SHRI LOHANA MAHAJAN TRUST,YAVATMAL vs. ITO (EXEMPTION) WARD-4, NAGPUR

PER BENCH:

This appeal filed by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, (for short, “CIT(A)”), dated 10/06/2025 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 28.12.2018 passed u/s. 144 r.w.s. 147 of the Act by the ITO (Exemption), Ward-4, Nagpur, for the Assessment Year (AY) 2012-13.

ITA No. 500/NAG/2025 (Shri Lohana Mahajan Trust) 2. On hearing both the sides, we find that assessee’s appeal has been considered by the NFAC in the light of the fact that assessment order passed u/s. 144 of the Act invoking powers provided by the Finance (No.2) Act, 2024 to restore the issues to the files of Ld. AO for denovo assessment. NFAC had granted the assessee an opportunity of hearing. Learned counsel appeared on behalf of the assessee submitted before us that no notice u/s. 143(2) of the Act was issued and the same has vitiated the assessment proceedings. We find that assessee has raised ground No.1 before the Ld. CIT(A) that assessment proceedings initiated u/s. 148 are void ab initio and in the submissions with regard to this ground, assessee had raised specific contention that in spite of assessee filing return of income, notice u/s. 143(2) of the Act was not issued which vitiated the entire proceedings. The contention is reproduced by the Ld. CIT(A) in page No. 6 of the impugned order. We are of the considered view that though assessment order has been passed u/s. 144 r.w.s. 147 of the Act, however, assessee raised legal ground questioning the assumption of jurisdiction, the Ld. FAA has to first decide the legal ground instead of invoking the powers of section 251 of the Act to the order denovo assessment. 3. In the light of the aforesaid facts and circumstances, we allow the appeal of the assessee for statistical purposes 2

ITA No. 500/NAG/2025 (Shri Lohana Mahajan Trust) and restore the issue of adjudicating the legal ground of the assessee to the files of the Ld. CIT(A) who shall pass the order afresh after affording the assessee a reasonable opportunity of being heard. Accordingly, the impugned order is set aside and the appeal is allowed for statistical purposes. 4. In the result, appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in open Court on 12.06.2026

sd/- sd/- ANUBHAV SHARMA KHETTRA MOHAN ROY ACCOUNTANT MEMBER JUDICIAL MEMBER Nagpur: Dated: 12/06/2026 vr/- Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order Vukkem Digitally signed by Vukkem Rambabu Rambabu Date: 2026.06.15 10:19:37 +05'30' Senior Private Secretary ITAT, Nagpur