Case remanded as assessee belonged to tribe and his income was exempt u/s 10(26) and he did not get opportunity to explain his case.
In a recent case, ITAT Guwahati remitted the case to Assessing Officer as the assessee was a resident Tribe of Arunachal and his income was exempt under section 10(26) and did not get opportunity to explain difference in turnover between Return and 26AS statement.
ABCAUS Case Law Citation:
4761 (2025) (09) abcaus.in ITAT
In the instant case, the assessee had challenged the order passed by the CIT(A) in dismissing his appeal against the order of the E Assessment Unit bringing to tax his income claimed as exempt u/s 10(26) of the Income Tax Act, 1961 (the Act).
The appellant assessee was a resident Tribal of Arunachal Pradesh. He was carrying out construction contract business. During the relevant Assessment Year he was having income of contract only in Arunachal Pradesh and his income was exempt u/s 10(26) of the Income Tax Act, 1961 (the Act).
Before the Tribunal the assessee submitted that he was a resident Tribal of Arunachal Pradesh having a Schedule Tribe Certificate issued by appropriate authority. Further, during the year he was having income of contract only in Arunachal Pradesh therefore his income was exempt u/s 10(26) of the Act.
It was submitted by the assessee that he was not expert in Income Tax and computer operation and unable to manage my PAN in Income Tax portal. Therefore, he engaged accountant to file his Income Tax return who filled his Income Tax return inter alia declaring exempt Income under section 10(26) of the Act. However, while processing the return CPC brought the exempt income under tax.
It was further submitted that the assessee filed a rectification return and the Income Tax Office passed a rectification order accepting the claim of exempt income.
It was submitted that after that his accountant did not checked portal but National E-Assessment Centre, Delhi issued notice for the Assessment u/s 142(1) which was available on Income Tax portal only but not send on the email of the assessee, nor sent by speed post or through any message on his registered mobile phone.
It was submitted that that National E-Assessment Centre passed the order u/s 143(3) and posted it on his PAN on Income Tax Portal. After that the auditor of the assessee informed me about order passed by faceless Authority. The assessee employed an accountant who filed appeal before the commissioner of Income Tax (appeals) on and after that he left for his native place at Bihar without informing the assessee. The accountant returned back after more than three years and after checking Income tax portal than informed the assessee that the Commissioner of Income Tax(appeals) had passed order dismissing his appeal.
The assessee also explained that the difference in the turnover in his Income tax return and figure of gross amount as appearing in 26AS Statement was due to fact that Form 26AS also reflected TCS collected on purchase of vehicle which was not the part of turnover.
The Tribunal opined that since there was no proper compliance before both the AO as well as the CIT(A), in the interest of justice and fair play it was appropriate to set aside the case before the AO so that proper opportunity of being heard may be provided.
Accordingly, the impugned order was set aside along with the order of the AO and the case was remitted back to the AO for making the reassessment de novoafter giving assessee a reasonable opportunity of being heard to make any further submission if any.
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