HASNAIN ZOEB UKANI,KOLKATA vs. I.T.O., WARD - 37(1),, KOLKATA

PDF · subscribers
ITA 1225/KOL/2025Status: HeardITAT Kolkata16 June 2026AY 2017-20189 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order was framed without jurisdiction as Section 151A of the IT Act, which governs faceless assessment, was not yet effective on the date of the assessment order. Therefore, the assessment order could not be sustained.

What were the facts?

The assessee's appeal was filed 4 days late, which was condoned. The assessee raised an additional ground challenging the jurisdiction of the NFAC in framing the assessment order.

What were the issues?

Whether the assessment order framed by the NFAC was 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 144,Section 144B,Section 148,Section 143(2),Section 142(1),Section 50C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Somnath Ghosh, AR
For Respondent: Shri Dipu Koley, DR
Hearing: 09.06.2026Pronounced: 16.06.2026

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 21.03.2025 for the AY 2017-18.

2.

At the outset, we note that the appeal of the assessee is barred by limitation by 04 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the

3.

The assessee has raised additional ground which is extracted below:-

“FOR THAT on a true and proper interpretation of the scope and ambit of the provisions of s. 151A of the Income Tax Act, 1961, the Ld. Commissioner of Income Tax (Appeals)- N.F.A.C. was absolutely in error in upholding the action of the National Faceless Assessment Centre, instead and place of the Ld. Income Tax Officer, Ward 37(1). Kolkata, of framing the assessment order u/s. 147/144 of the Act read with s. 144B of the Act on 28-03-2022 without any legal support of such illegitimate exercise and the purported conclusion reached on that behalf is completely opposed to law." 4. After hearing the rival contentions and perusing the material on record, we find that the assessee has raised the above additional ground of appeal challenging the jurisdiction of the AO to make addition. In our opinion the issued raised in the additional ground is a purely a legal issue qua which all the facts are available in the appeal folder and no further verification of facts are required from any quarter whatsoever. In our considered view the assessee is at liberty to raise any legal issue before any appellate authority for the first time even when the same has not been raised before the lower authorities. The case of the assessee is squarely coverd by the decisions of the Apex court in the case of i) Jute Corporation of India Ltd. Vs CIT in 187 ITR 688 , ii) National Thermal Power Co. Ltd v. CIT [1998] 229 ITR 383 and also by the decision of Hon’ble Calcutta High Court in PCIT vs. Britannia Industries Ltd. [2017] 396 ITR 677 (Cal). Therefore, we are inclined to admit the same for adjudication.

6.

After hearing the rival contentions and perusing the materials available on record, we 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, we are of the considered view that the issuance of notices and thereafter framing of assessment by the NFAC, dated 28.3.2022 are without jurisdiction as the Provisions of Section 151A of the Act were effective from 29.03.2022.Consequently the assessment order cannot be sustained. The case of the

“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 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:-

Blank

Blank

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.” 6.1. In view of the above facts and circumstances, we are inclined to quash the assessment framed by the ld. AO/ NFAC.

7.

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

Order pronounced on 16.06.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 16.06.2026 Sudip Sarkar, Sr.PS

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

More judgments on Section 151A

All 862 judgments and leading authorities on Section 151A →

Recent GST High Court judgments

Search GST case law →