SANJAY KUMAR JAISWAL,HOWRAH vs. DCIT CIRCLE -46/KOLKATA, KOLKATA

The only issue raised by the assessee is against upholding the assessment order by the National Faceless Appeal Centre, Delhi [the learned CIT (A)] vide order dated 21.03.2022, which is without jurisdiction and is accordingly, invalid.

The facts in brief are that the assessee did not file any return of income for the impugned assessment year. On the basis of information available that assessee has cash deposited of

The ld. AR vehemently submitted before us that the order passed by the NFAC is without jurisdiction as though the provisions dealing with the faceless assessment of income escaping the assessment u/s 151A of the Act were brought on statute book by Taxation and Other Law (Relaxation and Amendment of Certain Provisions) Act, 2020, with effect from 01.11.2020, however, the same were notified on 29.03.2022 vide notification no. 18/2022 on e-assessment of income escaping income of Assessment Scheme, 2022. Therefore, the ld. Counsel for the assessee submitted that the assessment framed by the National faceless assessment Centre was without valid jurisdiction as the provisions of Section 151A of the Act had not come into operation on that date when the

The ld. DR on the other hand submitted that the assessment has been framed by the NFAC after issuing notice as per the provisions of Section 151A of the Act which were brought on the statute book with effect from 1.11.2020. Therefore, the legal issue raised by the assessee may kindly be dismissed.

After hearing the rival contentions and perusing the materials available on record, we note that the assessment has been framed by the NFAC vide order dated 21.03.2022. We further find that the Section 151A of the Act deals with the faceless assessment of income escaping assessment and was brought on the statue book by taxation and other law (relaxation and amendment of certain provisions) Act, 2020, with effect from 01.11.2020 which was notified on 29.03.2022 vide notification no.18/2022/F. No. 370142/16/2022-TPL(Part)]. Therefore, the issuance of notice u/s 142(1) of the Act and thereafter framing of assessment by the NFAC, in our opinion, are without valid jurisdiction as the Provisions of Section 151A of the Act were effective from 29.03.2022. In considered opinion the assessment framed is without jurisdiction and cannot be sustained. The case of the assessee is squarely covered by the decision of the co-ordinate in case of MD Mahimud SK Vs. ITO in ITA no. 2230 & 2229/KOL/2024 vide

Considering the above facts and legal position, we are of the considered opinion that the order passed by the NFAC, Delhi is without jurisdiction and is hereby quashed. The appeal of the assessee is allowed. 13. The additional ground raised in ITA No. 2230/Kol/2024 A.Y.2017-18 is similar to one as decided by us in ITA No. 2229/Kol/2024 A.Y. 2015-16. Therefore, our decision would, mutatis mutandis, apply to this appeal as well. The appeal of the assessee is allowed. 14. In the result, the appeal of the assessee is allowed.” 7. In view of the above facts and circumstances and following the decision of the coordinate bench as discussed above , we are inclined to quash the assessment framed by the ld. AO/ NFAC.

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