AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 755
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....the Income Tax Act, 1961 (hereafter referred to as "the Act") by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as "the Ld. CIT(A)]. Since all the appeals relating to one assessee and are involving common issues therefore, these are beings disposed of by this consolidated order for the sake of brevity and convenience. ITA No. 1743/Kol/2025 2. Ground No. 1 is general in nature and no specific adjudication is required. 3. Ground No.2 is against the order of Ld. CIT(A) upholding the disallowance of exemption of Rs. 3,14,25,287/- by the AO rejecting the claim of the assessee u/s 10(26AAA) of the Act. 4. The facts in brief are that the assessee is an individual and f....
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....s is undisputed that the assessee is a member of bonafide domicile old settlor of Sikkim and is also member of association of old settlers of Sikkim and has been issued certificate to this effect by the said association. The Ld. AO disallowed the claim of the assessee u/s 10(26AAA) of the Act on the ground that the assessee did not furnish a 'Sikkim Subject Certificate' and therefore, assessee was not entitled to this exemption u/s 10(26AAA) of the Act. We also note that the association of old settlor of Sikkim has been in litigation before the Hon'ble Supreme Court to contest for the entitlement of the benefit u/s 10(26AAA) of the Act of Old Settlers of Sikkim and Hon'ble Supreme Court in the case of Association of Old Settlers of Sikkim v....
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....rdingly, show cause notice was issued to the assessee to prove the genuineness of the said gift, source of the donor with documentary evidences, confirmation letter and proofs of relationship failing which as to why the same should not be added u/s 68 of the Act to the income of the assessee. Assessee replied the said show cause notice on 22.11.2022 and 23.11.2022 submitting that the assessee has received gift from Sri Mahabir Prasad Agarwal bearing PAN ANQPA9433Q residing at Namchi Bazar, South Sikkim, Namchi and also attached the gift deed and copy of ledger account. The assessee also attached the proofs of the relationship attaching the PAN Card of the person. However, the AO was not satisfied with the evidences furnished by the assessee....
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....e admit these evidences and restore this issue back to the file of AO with the direction to decide the issue afresh after taking into account the additional evidences evidence furnished by the assessee. Needless to say that if the gift is made by the brother of the assessee and source is proved by the supporting evidences, then no addition is called for. Thus, we restore this issue to the file of the AO with the above observations. Accordingly, Ground no. 3 is allowed for statistical purposes. 12. The issue raised in Ground No. 4 is against the order of CIT(A) confirming the addition of Rs. 2,05,40,127/- as made by the AO by estimating 8 % on the undisclosed turnover. 13. The issue is consequential to Ground No. 2 and therefore, our f....
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....essee vide written submission submitting that section 269SS has no application because no cash loan or deposit has been accepted by the assessee. The amount reflected in the books was only a journal entry passed to record a cheque payment made by Shri Mahabir Prasad Agarwal to M/s Gawar Constructions on behalf of the assessee. However, the Ld. Addl. CIT(A), Range 2, Siliguri passed an order imposition penalty u/s 271D of the Act vide order dated 08.09.2022 treating the journal entry as a cash transaction without taking into account the evidences placed on record. 17. In the appellate proceedings, the Ld. CIT(A) confirmed the penalty by holding that the assessee failed to give any justification for making payment in cash. 18. After hea....