LINGARAJ DEBTA,BARGARH vs. ITO, WARD BARGARH, BARGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “CUTTACK BENCH, CUTTACK VIRTUAL HEARING AT KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA No.273/CTK/2026 Assessment Year: 2013-14 Lingaraj Debta ITO, Ward Bargarh Vs Ward No.1, Near Toll Gate, Bargarh, Odisha-768028. (PAN: AKIPD2462M) (Appellant) (Respondent)

Assessee by : Shri Sunil Surana, AR Revenue by : Shri Vijay Singh, Sr. DR Date of Hearing : 18.05.2026 Date of Pronouncement : 18.05.2026

ORDER PER BENCH: This is an appeal filed by the assessee against the order of the NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2012-13/10166764 dated 25.09.2025.

ITA No.273/CTK/2026

ITA No.273/CTK/2026

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“8. The second limb of the arguments at the time of hearing by the counsel of the assessee was that notice was issued on 15.03.2022 by the National Faceless Assessment Centre, Delhi to show cause as to why proposed addition should not be made. However, we note that the National Faceless Assessment Centre was not having jurisdiction prior to 29.03.2022 to issue any notice as the provisions of section 151A of the Act were notified vide Notification No. 18/2022 on the e- assessment of income escaping assessment scheme-2022. Therefore, the assessment framed finally by the AO dated 30.03.2022 is also invalid and cannot be sustained. For the sake of ready reference the show cause notice is extracted below: “1. We appreciate the anxiety and uncertainty that is facing all of communication is to assist you for the Assessment Year 2017-18 assist you in ending one

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uncertainty, which is which is pending e-Assessment in your case for the Assessment Year 2017-18. 2. The variations as per the draft assessment order may be seen which are proposed to be made in your case. Draft Assessment Order Assessee company has filed its return of income for the A.Y 2017-18 on 28.03.2018 vide acknowledgement number 526544381280318 declaring income of Rs. 17,640/-. Some credible information was received from DDIT(Inv.), Unit 1(3), Kolkata vide letter dated 07.09.2018. From the perusal of the same it was noticed that the assessee company has made cash deposit of Rs. 12,20,000/- in its bank account during the demonetization period. 2. On examination of ITR and Balance Sheet of the assessee company it is found that there is no rationale behind such transactions which is actual infusion of assessee's own money, generated through unaccounted source of income. 2.1 Accordingly, the case was reopened u/s 147 and notice u/s 148 r.w.s. 147 of the Act, issued to the assessee vide DIN No. ITBA/AST/S/148/2020- 21/1032095516(1) dated 31.03.2021 and served upon the assessee. In response to notice u/s 148, the assessee has not filed his return of income. Thereafter, vide letter F.No. ITBA/AST/F/142(1)/2021-22/1037086528(1) dated 20.11.2021, notice u/s 142(1) fixing the proceedings for 06.12.2021, the assessee was again requested to furnish certain general information of company, details of bank accounts, cash book etc 9. The case of the assessee finds supports of the decision of coordinate Bench in the case of. MD Mahimud SK Vs. ITO, in ITA Nos. 2230 & 2229/KOL/2024 vide order dated 04.03.2025, the operative part of the same is extracted below:- 10. After hearing the rival contentions and perusing the materials available on record, we find that the notice to the assessee was issued u/s 148 of the Act on 31.03.2021, through e-mail after the case was reopened u/s 147 of the Act. Notice u/s 143(2) read with section 147 of the Act was issued on 29.06.2021 and thereafter , the proceedings would taken over by National Faceless Centre, Delhi and notice u/s 142(1) dated 09.02.2022, was issued and thereafter show cause was issued to assessee by the NFAC on 17.03.2022. Finally, the assessment was framed u/s 147 read with section 144B of the Act vide order dated 23.03.2022. 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 29.03.2022 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 29.03.2022 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 without jurisdiction and cannot be sustained. The

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case of the assessee find force from the decision of Nabiul Industrial Metal Pvt. Ltd., Paschim Medinipur VS. I.T.O., in ITA no. 1328/KOL/2024 for A.Y. 2017-18, the order dated 15.10.2024, wherein a similar issue has been decided in favor of the assessee. For the sake of ready reference, the notice issued u/s 142(1) dated 09.02.2022 and show cause notice dated 17.03.2022, are extracted below:-

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invalid and the same stands quashed. Consequently, the consequent assessment order also stands quashed.

Kolkata, the 18th May, 2026.

Sd/- Sd/- [Rajesh Kumar] [George Mathan] लेखा सदस्य/Accountant Member न्याययक सदस्य/Judicial Member

Dated: 18.05.2026. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar