PADMINI VYAPAAR PVT. LTD.,,KOLKATA vs. ITO, WARD 9(3),, KOLKATA
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the assessment framed by NFAC was without jurisdiction as Section 151A, which empowers faceless assessments, was notified on March 29, 2022. Therefore, any assessment framed prior to this date by NFAC is null and void.
What were the facts?
The assessee's case was reopened, and the assessment was framed by the National Faceless Assessment Centre (NFAC) in September 2021. The assessee raised an additional ground challenging the jurisdiction of NFAC to frame the assessment prior to March 29, 2022, when Section 151A of the Income-tax Act was notified.
What were the issues?
The key legal issue was whether the National Faceless Assessment Centre had the jurisdiction to frame a reassessment order prior to the notification of Section 151A of the Income-tax Act.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
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 18.12.2025 for the AY 2013-14.
The assessee has raised additional ground at the time of hearing which is extracted below:-
"1. That on the facts and in the circumstances of the case and in law, the reassessment order dated 24.09.2021 passed under section 147 read with section 144B of the Income-tax Act, 1961 by the National Faceless Assessment Centre is without jurisdiction, void ab initio and liable to be quashed, as the assumption of jurisdiction by NFAC was prior to 29.03.2022, when no notification under section 151A of the Act was in force authorising faceless reassessment proceedings."
The facts in brief are that the assessee filed the return of income on 26.09.2013, declaring total income at ₹9,460/-. The ld. AO on perusal of the return of income noted that the turnover of the assessee during the year was ₹11,64,899/- and the purchases were ₹60,66,685/-. Thereafter, the ld. AO received information from the DDIT (Investigation), Unit-1(1), Kolkata, vide letter dated 26.02.2019, regarding Banka Group of cases and it was found that assessee was in receipt of ₹1,15,284/- from various shell/ paper companies operated by Banka Group of Cases. Accordingly, the case of the assessee
The ld. Counsel for the assessee vehemently submitted before us that the assessment framed by the NFAC, Delhi is without jurisdiction as the NFAC has no power to frame the assessment prior to 29.03.2022, as the Provisions of Section 151A of the Act were notified on the said date. The ld. AR relied on the decision of Ranjit Gupta Vs. ITO Ward 1(1), in ITA No. 3032/KOL/2025 for A.Y. 2017-18, vide order dated 15.04.2026. The ld. AR therefore prayed that the assessment may kindly be quashed.
The ld. DR on the other hand submitted that there is no bar on the NFAC to frame the assessment even prior to 29.3.2022 as this is something which is purely administrative and assessee has no lcus standie to raise this issue. Therefore, the additional ground raised may kindly be dismissed.
After hearing the rival contentions and perusing the materials available on record, we find that the assessment has been framed by the National Faceless Assessment Centre vide order dated 24.9.2021, which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless assessment were notified on and 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
7.1. Therefore, respectfully following the above decisions , we quash the assessment framed by the AO/ NFAC. The additional ground raised by the assessee is allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced on 28.04.2026.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 28.04.2026 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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