I.T.A. Nos.1458, 1459, 1461 & 1462/Kol/2023

Parties Involved

Facts Summary

The assessee, Kailash Agarwal, appealed against the orders of the National Faceless Appeal Centre passed under Section 250 of the Income Tax Act for different assessment years. The primary issue was whether the assessee, a resident of Sikkim, was entitled to exemption under Section 10(26AAA) of the Act. The Assessing Officer denied the exemption, observing that the assessee was not an original resident of Sikkim. The assessee argued that he and his ancestors were old settlers of Sikkim and should be treated as Sikkimese residents. The Supreme Court in Writ Petition (C) No.59 of 2013 held that the benefit of income-tax exemption is restricted to those Sikkimese who fall within the three clauses of the Explanation to Section 10 (26AAA) of the Income Tax Act, 1961, or those persons domiciled in Sikkim, or are Sikkimese as covered under the 1961 Regulation. The assessee produced a certificate from the District Collector, East District, Gangtok, certifying that his father had been residing in Sikkim prior to 26th April 1975 and had been continuously residing there since then. The assessee also claimed to have been residing in Sikkim since birth.…

Legal Issues

• 1. Entitlement to exemption under Section 10(26AAA) of the Income Tax Act

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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