OPTIMIX SECURITIES PVT. LTD.,KOLKATA vs. I.T.O., WARD - 7(1), KOLKATA

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ITA 1138/KOL/2026Status: DisposedITAT Kolkata16 July 2026AY 2016-20173 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment framed by the NFAC was without jurisdiction as it was completed prior to the notification conferring jurisdiction on the NFAC for faceless assessments. Therefore, the assessment order was considered null and void.

What were the facts?

The assessee's return for AY 2016-17 was filed normally. The case was reopened under Section 147, and assessment was framed by the National Faceless Assessment Centre (NFAC) on 29.03.2022. The assessee contended that the NFAC lacked jurisdiction as the relevant notification for faceless assessment was issued on the same date.

What were the issues?

The primary issue was whether the National Faceless Assessment Centre had the jurisdiction to frame the assessment when the notification conferring such jurisdiction was issued on the same date as the assessment order.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 151A,Section 139(1),Section 148,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA

For Appellant: Shri Sunil Surana, AR
For Respondent: Shri Subrata Aich, DR
Hearing: 06.07.2026Pronounced: 16.07.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 28.01.2026 for the AY 2016-17.

2.

The only issue raised assessee is against the assessment framed by NFAC (National Faceless Assessment Centre), u/s 147 read with section 144B of the Act vide order dated 29.03.2022 without having jurisdiction u/s 151A of the Act, as the applicability of the section was notified vide notification dated 29.03.2022.

3.

The facts in brief are that the return of income was filed u/s 139(1) of the Act on 16.10.2016, declaring total income at

4.

After hearing the rival contentions and perusing the materials available on record, I find that the assessment has been framed by the NFAC, Delhi even prior to the notification issued on 29.03.2022 conferring jurisdiction on NFAC ,which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless assessment were notified from 29.03.2022 vide notification no. 18/2022/F. No. 370142/16/2022-TPL(Part) though the same were brought on statute book by the Taxation and Other Law (realization and amendment of certain provisions) Act, 2020 with effect from 01.11.2020. Considering these facts, the assessment framed by the National Faceless Appeal Centre is null and void as the same is without jurisdiction and cannot be sustained. The case of the assessee find support from the decision of the co-ordinate Bench in case MD Mahimud SK Vs ITO ITA No. 2230 & 2229/Kol/2024 order dated 4.3.2025. Similarly, the Telangana High Court in case of Kankanala Ravindra Reddy vs. Income-tax Officer [2023] 156 taxmann.com 178 (TELANGANA)/[2023] 295 Taxman 652 (TELANGANA)[14-09-2023], Hon'ble jurisdictional

5.

In the result, the appeal of the assessee is allowed.

Order pronounced on 16.07.2026.

Sd/- (RAJESH KUMAR) (ACCOUNTANT MEMBER) Kolkata, Dated: 16.07.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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