DY COMMISSIONER OF INCOME TAX CIRCLE 7.1.1, MUMBAI vs. NOVOTECH STEEL & ALLOYS PRIVATE LIMITED, MUMBAI

The present appeal preferred by the Revenue is directed against the Order, dated 09/10/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby Learned CIT(A) had allowed the appeal against the Assessment Order, dated 23/09/2021, passed under Section 147 read with Section 144B of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the Assessment Year 2015-2016. 2. The Revenue has raised following grounds of appeal:

When the appeal was taken up for hearing the letter seeking adjournment was moved on behalf of the Assessee. On perusal of records shows that even on the last date of hearing similar letter seeking adjournment was filed.

The Learned Departmental Representative for the Revenue pointed out that the Revenue is aggrieved by the fact that the Learned CIT(A) had adjudicate the grounds raised by the Assessee by applying law that came into force subsequently and therefore, the order passed by the Learned CIT(A) was not sustainable in law.

On perusal of above, we find that the Learned CIT(A) had held that notice dated 18/03/2020 was bad in law since income that escaped assessment was less than INR.50 lakhs and the notice of reopening reassessment could not have been issued beyond three years from the end of relevant Assessment Year (i.e. 31/03/2019). We note that the amended provisions on which reliance were placed by the Learned CIT(A) were introduced by Finance Act, 2021 and the same came into effect from 01/04/2021. Thus, the Learned CIT(A) has applied the amended provisions which came into effect from 01/04/2021 with retrospective effect while concluding that the Assessing Officer could not initiated reassessment proceedings after 31/03/2019. In our view the aforesaid approach and reasoning adopted by Learned CIT(A) cannot be countenanced as the same is contrary to law. Accordingly, we set aside the Impugned Order, dated 09/10/2025, passed by Learned CIT(A) with the directions to adjudicate the grounds raised by the Assessee afresh after granting Assessee a reasonable opportunity of being heard. Accordingly, Ground 1.i raised by the Revenue is allowed. Since we have restored the appeal back to the file of Learned CIT(A), Ground No.1.ii and 2 are dismissed as having being rendered infructuous. All the rights and contentions of the Assessee are left open. The Assessee would be at liberty to raise all legal contentions before the Learned CIT(A).

In terms of the paragraph 4 above, appeal preferred by the Revenue is partly allowed.

"धान आयकर आयु"/ Pr.CIT 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, मुंबई/ DR, ITAT, Mumbai 6. गाड" फाईल / Guard file.