TMI Blog2012 (1) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... e case was reopened and the notice u/s.148 of the I.T.Act, 1961 was issued. The assessment u/s. 143(3)/147 of the I.T. Act, 1961 was completed at a total income of ₹ 10,70,820/-. 3. Before the learned Commissioner of Income-tax (Appeals), it was submitted that the assessee was engaged as contractor in the state of Sikkim. All the contract works were executed for Central Public Works Deptt.[ CPWD], Gangtok. The return for the assessment year 2004-05 was filed on 28-10-2004. It was further pointed out that during the pendency of appeal, section 10(26AAA) was inserted in the Income-tax Act, 1961 by the Finance Act, 2008 w.e.f. 01-04-1990 by which all the individuals being Sikkimes were not liable to pay Income-tax under the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same from the CIT(A). As such, there is no issue before the CIT(A) to decide. As no argument was made on merit, the action of the ld.AO stands confirmed. 4. Being aggrieved by the said order of the learned Commissioner of Income-tax (Appeals), now the assessee is in appeal before us and inter-alia, has taken following grounds of appeal:- 1. That the Ld. CIT (A) has erred in confirming the order passed by the AO. 2. That the Ld. C.I.T. (A) erred in denying the benefit of section 10 (26AAA) inserted by the Finance Act, 2008 w.e.f. 01.04.1990 to the appellant though he admitted that the appellant fulfilled all the conditions laid down in the said section. 3. That the Ld. CIT. (A) erred in rejecting the Additional Ground tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessment year which was under consideration before the Tribunal. In these circumstances, it cannot be contended on behalf of the Revenue that the assessment proceedings come to an end when the assessment order is framed. The contention on behalf of the Revenue to equate the assessment order with assessment proceeding is based on a fallacious premise. 6. The ld.DR has relied on the orders of the authorities below. 7, We have considered the rival submissions and perused the record of the case. From the observations of the learned Commissioner of Income-tax (Appeals), it is evident that the assessee fulfills all the conditions as laid down in section 10(26AAA) of the I.T.Act 61. Admittedly, on the date of filing of return sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is confined to the issues arising out of impugned order, but if a legal issue comes into operation at appellate proceedings stage only, for which no fresh scrutiny of facts is required, then the legal claim can be entertained by appellate authority particularly, when he has co- terminous powers with the authority passing the impugned order. Accordingly, we set aside the order of the learned Commissioner of Income-tax (Appeals) and allow the ground no.2 raised by the assessee. 8. The other grounds raised by the assessee before us are on merit and, therefore, need no adjudication as the entire income earned by assessee was exempt from tax. 9. In the result , the appeal of the asses see is al lowed. Order pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
