RAJESH KUMAR SINGHI,KOLKATA vs. A.C.I.T., CIRCLE - 52(1), KOLKATA

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ITA 541/KOL/2026Status: DisposedITAT Kolkata25 June 2026AY 2015-20169 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment orders passed by the NFAC were without valid jurisdiction because the provisions of Section 151A of the Income Tax Act, which govern faceless assessment, were not effective on the dates the assessment proceedings were initiated and completed.

What were the facts?

The assessee did not file returns for AY 2014-15 and 2015-16. The National Faceless Appeal Centre (NFAC) passed assessment orders without jurisdiction as the relevant faceless assessment provisions were not yet notified at the time of assessment proceedings.

What were the issues?

Whether the assessment proceedings conducted by the NFAC were without jurisdiction due to the effective date of Section 151A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 151A,Section 147,Section 144B,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Anil Kochar, AR
For Respondent: Shri Sanat Kumar Raha, DR
Hearing: 15.06.2026Pronounced: 25.06.2026

Per Rajesh Kumar, AM:

These are appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 2505.2025& 23.09.2025 for the AY 2014-15& 2015-16.

2.

At the outset, we note that the appeals of the assessee in ITA Nos. 540 & 541/KOL/2026 are barred by limitation by 196 & 74 days respectively, for which condonation petitions along with affidavits were filed. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeals to be beyond the control of the assessee. The Ld. D.R

2.

The issue raised in both the appeals in ITA Nos. 540 & 541/KOL/2026, are exactly identical, hence, we will take ITA No.540/KOL/2026 as lead case and decide the issue accordingly.

3.

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 25.03.2022, which is without jurisdiction and is accordingly, invalid.

4.

The facts in brief are that the assessee did not file its return of income for AY 2014-15. The ld. AO noted that assessee had entered into transactions of purchase of immovable properties valuing at ₹4,63,93,425/-, payment made in respect of transfer of immovable property of ₹2,41,07,096, payment made against credit card bills of ₹15,64,324/-, payment made for purchase of Units of Mutual Funds of ₹3,37,00,000/-, salary received of ₹1,47,60,359/- and payment made for acquiring bond/stock/debentures of ₹52,00,000/-. Therefore, the ld. AO issued notice u/s 148 on 25.03.2021, for which no response has been filed by the assessee.Thereafter, Notice u/s 142(1) was issued but the assessee did not respond to the same and the impugned assessment order was passed u/s

5.

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 was 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 2503.2022 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 jurisdiction was assumed by the National Faceless Assessment Centre, Delhi.The ld. AR submitted that the notice u/s 142(1) of the Act was issued by NFAC on 24.11.2021 even prior to 253.2022 and therefore, the whole of assessment is without jurisdiction and not sustainable in law and may be quashed.

6.

The ld. DR on the other hand submitted that the assessment have 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.

“11. We have perused the section of Section 151A of the Act, which deals with the faceless assessment of income escaping assessment and was brought on the statute book by taxation and other law (realization and amendment of certain provisions) Act, 2020, with effect from 01.11.2020 which was notified on 2503.2022 vide notification no.18/2022/F. No. 370142/16/2022-TPL(Part)]. Therefore, the assessment proceedings were taken by the National Faceless Assessment Centre, Delhi by issuing notice u/s 142(1) dated 09.02.2022 and thereafter the assessment was framed accordingly after issuing show cause notice which in our opinion is without jurisdiction. The provisionw of Section 151A of the Act were brought on the statute book with effect from 01.11.2020. However, the same were made effective and applicable with effect from 2503.2022 vide notification no. when the CBDT notified the new scheme for assessment of income escaping assessment scheme, 2022. In our considered view the assessment framed is

12.

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.” 7.1. 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.

8.

The appeal of the assessee is allowed in ITA No. 540/KOL/2026.

10.

In the result, both the appeals of the assessee are allowed

Order pronounced on 2506.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 2506.2026 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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