KARUNAKAR BISWAL,ANGUL vs. INCOME TAX OFFICER, WARD, ANGUL, ANGUL

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ITA 277/CTK/2026Status: DisposedITAT Cuttack19 May 2026AY 2013-143 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order was invalid as it was passed before the effective date of the empowering notification. Consequently, the penalties levied were also deleted as they had no basis.

What were the facts?

The assessee's assessment order was passed by the NFAC on March 28, 2022. However, the notification empowering the NFAC to pass such orders was issued on March 29, 2022. Penalties were also levied under Sections 271(1)(c) and 271F.

What were the issues?

The primary issue was the validity of an assessment order passed by the NFAC before the date of its empowerment notification. A consequential issue was the validity of penalties levied based on this assessment.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 271(1)(c),Section 271F

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “CUTTACK BENCH, CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

For Appellant: Shri Mohit Sheth, AR
For Respondent: Shri Vijay Singh, Sr. DR
Hearing: 19.05.2026Pronounced: 19.05.2026

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 Nos.277 , 281 & 289/CTK/2026 Assessment Year: 2013-14 Karunakar Biswal ITO, Ward-Angul, Angul Vs 1, Dasahara Sahi, Begadia, Angul, Odisha-759141 (PAN: ALFPB 9083 N) (Appellant) (Respondent)

Assessee by : Shri Mohit Sheth, AR Revenue by : Shri Vijay Singh, Sr. DR Date of Hearing : 19.05.2026 Date of Pronouncement : 19.05.2026

ORDER PER BENCH: ITA No.277/CTK/2026 is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC in appeal no. NFAC/2012-13/10564346, dated 15.03.2026 in quantum assessment u/s 147/144 and ITA No.281/CTK/2025 & ITA 289/CTK/2026 are the appeals also filed by the assessee against the order of the ld. CIT(A), NFAC in appeal nos. NFAC/2012-13/10565032, NFAC/2012-13/10565033 both dated 15.03.2026 against the confirmation of penalty levied u/s 271(1)(c) and 271F of the Act for assessment year 2013-14.

ITA No.277, 281 & 289/CTK/2026

2.

Shri Mohit Sheth, AR, AR represented on behalf of the assessee and Shri Vijay Singh, Sr. DR represented on behalf of the revenue.

3.

It was the submitted by the ld. AR that the assessment order has been passed on 28.03.2022 by NFAC. It was the submission that the notification has been issued on 29.03.2022 giving powers to NFAC to pass assessment order. It was the submission that as the assessment order has been passed before the date of notification, the assessment order is liable to be quashed.

4.

In reply, the ld. Sr. DR vehemently supported the order of the Assessing Officer and ld. CIT(A).

5.

We have considered the rival submissions. A perusal of the facts of the present case clearly shows that the assessment order has been passed by NFAC on 28.03.2022 whereas the notification authorizing the NFAC to pass assessment order was issued on 29.03.2022. Consequently, the assessment order has been passed on 28.03.2022 before the effective date of notification i.e. 29.03.2022 is found to be invalid and consequently quashed. ITA No.277/CTK/2026 is allowed.

6.

Coming to the penalties levied u/s 271(1)(c) and 271F of the Act, as the assessment is no more survive and the penalties levied u/s 271(1)(c) and 271F do not have any legs to stand and consequently the penalties

ITA No.277, 281 & 289/CTK/2026

levied u/s 271(1)(c) and 271F of the Act stand deleted. Thus, ITA No.281/CTK/2025 & ITA 289/CTK/2026 stand allowed.

7.

In the result, all the captioned appeals of the assessee are allowed.

Kolkata, the 19th May, 2026.

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

Dated: 19.05.2026. 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

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