2025 (4) TMI 1929

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....ain to the Assessment Years [AY] 2020-21 to 2021-22. 2. The grievances of the assessee in both the appeals are similar in nature, and, therefore, we adjudicate the ITA No. 263 / GTY / 2024 and our observations would be binding on both the appeals. 3. The grounds of appeal of the assessee are submissive in nature which as under:- (i) For that on the facts and circumstances of the case as well as on the points of law the assessing officer erred in making an addition of Rs. 8,76,24,496/- u/s 69A of the Income Tax Act 1961. (ii) For the facts and circumstances of the case the Ld. AO has erred in not considering the income of the assessee as exempt income u/s 10(26). (iii) As the assessee was not liable to tax u/....

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.... The brief facts of the case are that, the assessee filed return of income on 10.09.2020 declaring total income of Rs. 3,04,070/-. This return of income was selected for complete scrutiny under CASS on the following issues: 1. Verification of transactions. 2. Suspicious claim of exemption u/s 10(26) as TDS is deducted by a deductor who is not from the areas or state mentioned in section 10(26). 3. Claim for large exempt Income (Business ITR). Accordingly, notices u/s 143(2) of the Act dated 29.06.2021 and notices u/s 142(1) were issued to the assessee from time to time asking to submit details as mentioned therein. The assessee did not respond to that notices. A show cause notice dated 20.09.2022 was issu....

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....me in view of such exemption from income tax. On the other hand, the Ld. DR pointed out that, the assessee failed to substantiate his claims before the assessing officer. The assessment order is an ex-parte order. The assessee did not participate in the assessment proceedings and also failed to substantiate his claims during the appellate proceedings before the ld. CIT(A). 8. We do not agree to the submission of the Ld. AR that, the assessee is not required to furnish return of income as he is covered under section 10(26) of the Act. It is our considered opinion that, the assessee has to make claim for exemption from payment of tax by submitting the required materials before the Department. The assessee himself cannot take a decision tha....