ACIT, CIRCLE-4, NAGPUR, NAGPUR vs. TEJAS ASHOKKUMAR BHAYANI, NAGPUR

On hearing both the sides, we find that the Revenue before us contest and challenge the impugned order on the basis that Ld. CIT(A) has erred in setting aside the assessment order as per the provisions of Section 251(1)(a) of the Act.

Ld. DR has vehemently argued that National Faceless Appeal Centre (NFAC), Delhi, has exceeded its powers of setting aside the assessment order by relying on amendment to Section 251 of the Act which is not applicable to the facts and circumstances of the present case.

To this contention of Ld. DR, Ld. AR has not submitted anything on facts or proposition of law, however, it was contended that by way of Cross Objection, the assessee has raised several questions of law which establish that 2

We have considered the contentions and gone through the material on record and very apparently it comes up from the assessment orders for the years involved that assessment has been completed on merits, as assessee had filed detailed replies and evidences and were not completed under Section 144 of the Act as best judgment assessment. The Proviso as added to sub-section (a) to Section 251(1) of the Act has come into effect by way of Finance (No.2) Act, 2024 w.e.f. 01.10.2024, however, the powers which have been vested are in regard to assessments made under Section 144 of the Act. We further find that before the Ld. First Appellate Authority by way of ground No.1, the assessee in its submission has raised quite many legal grounds and the same have been in some form raised before us by way of Cross Objections. We are of the considered view that even in cases where the assessment order is passed under Section 144 of the Act still if assessee raises legal grounds challenging the assumption of jurisdiction or otherwise alleges that the assessment order is vitiated for not being in accordance with law then too Ld. first Appellate Authority cannot take recourse to proviso to Section 251(1)(a) of the Act, but the legal grounds should be adjudicated.

In the aforesaid terms, the appeals of the department are allowed and Cross Objections being infructuous are dismissed.