LAVANYAMAYEE TRADECOM PRIVATE LIMITED,KOLKATA vs. ITO, WARD 2(1),, DURGAPUR

IN THE INCOMETAXAPPELLATE TRIBUNAL “B” BENCH, KOLKATA Before ShriRajesh Kumar, Accountant Member and ShriPradip Kumar Choubey, Judicial Member ITA No.2808 & 2809/Kol/2025 Assessment Year: 2014-15 Lavanyamayee Tradecom pvt ltd……………………….………………………….Appellant 29D, Bentick Street Unit- A,B & C, 3ed Floor, West Bengal- 700001 [PAN No. AACCL5534H] Vs. Ito, Ward 2(1).……………………..…………….………... Respondent Aayakar Bhawan, Aayakar Bithi, City Centre, Durgapur, West Bengal- 713216 Appearances by: Shri Ankit Jalan, Advocate., appeared on behalf of the Appellant. Shri Soumitra Ghosh, Addl. CIT, Sr. DR ,appeared on behalf of the Respondent Date of concluding the hearing : April 28, 2026 Date of pronouncing the order :May 15 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: These appeal filed by the assessee is directed against the order dated 09.10.2025 & 10.10.2025 of the National Faceless Appeal Centre (NFAC) passed under Section 147 and 271(1)© of the Assessment Year 2014-15 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

ITA No.2808 & 2809/Kol/2025 Assessment Year- 2014-15 total income of Rs. 60,400/-. In order to find out the source of transfer made amounting to Rs. 25,00,000/- notice U/s 133(6) was issued to M/s Gangur Vyapaar Pvt. Ltd. but it was returned back. A notice U/s 142(1) was served upon the assessee and in response to the same assessee filed copy of audit report, copy of ITR, sells bill and purchase bill. The Ld. AO has requested the assessee to furnish the detail of the status of the company, details of payment made to the assessee, etc. but the assessee did not respond, as a result of which, a sum of Rs. 25,00,000/0 was added to the total income of the assessee. Aggrieved by the said order assessee preferred appeal before the CIT(A) wherein appeal of the assessee has been dismissed. Being aggrieved by and dissatisfied the assessee preferred appeal before us. 3. The Ld. counsel for the assessee challenges the impugned order by taking several grounds but in course of hearing assessee took an additional ground being the legal ground which is as follows:-

For that on the facts and in the circumstances of the case, the National Faceless Assessment Centre erred in assuming jurisdiction u/s. 151A r.w.s. 144B of the I.T. Act, 1961 from 17/09/2021 when they were not empowered under any notification about the applicability of the faceless scheme for making assessment in faceless manner prior to 29.03.2022. Learned counsel for the assessee submitted that the provisions of Section 151A of the Act can into the statute book on 01.11.2020 but the same was notified on 29.03.2022 and in the present case date of issue of notice u/s 142(1) was issued on 20.02.2021 which is evident from the order passed on 17.09.2021. Learned counsel for the assessee further submits that assumption of jurisdiction by NFAC was

ITA No.2808 & 2809/Kol/2025 Assessment Year- 2014-15 without jurisdiction consequentially the whole assessment is without jurisdiction and unsustainable in law. The learned counsel cited following decision of the Tribunal passed on this issue :- (1) ITA No. 2533/Kol2025 (2) ITA No. 2230 & 2229/2024 4. Contrary to that Ld. DR supports the impugned order after hearing the rival contention and perusing the materials available on record we find that assessment as in the present case has been framed by the national faceless assessment centre vide order dated 17.09.2021 which is in our opinion is without jurisdiction as the provisions of Section 151A of the Act which provides from faceless assessments were notified from 29.03.2022, vide notification No. 18/2022/F No. 370142/16/2022 TPL(part). Though the same were brought on the statute took by the taxation and other law for realization amendment certain provisions Act 2022 with effect from 01.11.2020. We have gone through the several decisions of the ITAT and find that in ITA No. 2533/Kol/2025 the bench has discussed this issue and held thus:-

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 22.03.2022, which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless assessment were notified 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 provisions) Act, 2020 with effect from 01.11.2020. Considering these facts, the assessment framed by the National Faceless Appeal Centre is null and void as the same is without jurisdiction and cannot be 3

ITA No.2808 & 2809/Kol/2025 Assessment Year- 2014-15 sustained. The case of the ITA No. 2533/KOL/2625 Sushant Guak A.. 2014-15, assessee find support from the decision of the co-ordinate Bench in case MD Mahimud SK VS ITO ITA No. 2230 & 2229/Kol/2024 order dated 4.3.2025. Similarly, the Telangana High Court in case of Kankanala Ravindra Reddy vs. Income-tax Officer [2023] 156 taxmann.com 178 (TELANGANA)/[2023] 295 Taxman 652 (TELANGANA) [14-09-2023], Hon'ble Jurisdictional High Court in case of Triton Overseas (P.) Ltd. vs. Union of India [2023] 156 taxmann.com 318 (Calcutta) [13-09-2023] and Hon'ble Bombay High court in Samp Furniture (P.) Ltd. vs. Income-tax Officer [2025] 477 ITR 187 (Bombay) [05-08-2024] decided the identical issue in favour of the assessee. Therefore, respectfully following the above decisions , we quash the assessment framed by the Id. AO. 5. Keeping in view the facts of the case and respectfully following the decision, we quash assessment framed by the Ld. AO. In the result the appeal of the assessee is allowed on this issue. ITA No. 2809/25 6. The present appeal has been filed against the penalty proceeding which has been arisen out from the assessment order passed on 18.09.2021. Since the assessment order passed on 17.09.2021 has been declared as null and void, hence the penalty proceeding which has been initiated from the same assessment order has also got no force in law, accordingly, the penalty order is hereby set aside and penalty is deleted. In the result the both appeal of the assessee are allowed.

ITA No.2808 & 2809/Kol/2025 Assessment Year- 2014-15 Kolkata, the 15th May, 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member Dated:. 15 .05.2026. DC, PS

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

//True copy// By order Assistant Registrar, Kolkata Benches

ITA No.2808 & 2809/Kol/2025 Assessment Year- 2014-15