SANDEEP SHYAMSUKHA,SILIGURI vs. I.T.O., WARD - 1(3),, SILIGURI

ITA 1247/KOL/2026Status: DisposedITAT Kolkata22 September 2026AY 2015-20167 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assumption of jurisdiction by the Assessing Officer prior to March 29, 2022, was without jurisdiction. The notification regarding Section 151A, which governs the e-Assessment of Income Escaping Assessment Scheme, came into effect from March 29, 2022. The Tribunal noted that notices under Section 142(1) were issued on December 14, 2021, and a show-cause notice was issued on March 24, 2022, both in a faceless manner, and the assessment order was passed on February 24, 2022, all prior to the effective date of the notification. The Tribunal relied on a coordinate bench's decision in Nabiul Industrial Metal Pvt. Ltd. vs. ITO. It observed that the show-cause notice dated March 28, 2022, was digitally signed on March 29, 2022, at 00:20:37 IST, yet directed the assessee to explain by March 29, 2022, which was illogical. Consequently, the assessment order and all subsequent orders were deemed to be without jurisdiction. The appeal was allowed on this legal issue, making it unnecessary to decide other grounds. The Tribunal directed that the appeal be allowed.

What were the facts?

The assessee, Sandeep Shyamsukha, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2015-16. The case was reopened under Section 147 of the Income-Tax Act, 1961, due to cash deposits of Rs. 1,68,00,000/- in an ICICI Bank account, the source of which could not be explained. A notice under Section 148 was issued on March 30, 2021. The reassessment proceedings culminated in an order under Section 147 read with Section 144B on February 24, 2022, assessing total income at Rs. 1,72,10,140/- after adding Rs. 1,68,91,300/- as unexplained money under Section 69A. The assessee's appeal to the CIT(A) was dismissed. The appeal to the ITAT was filed after a delay of 127 days, which was condoned.

What were the issues?

1. Whether the order passed by the CIT(A), NFAC, Delhi, under Section 250 is against the principle of natural justice? (Question of law) 2. Whether the Assessing Officer, National Faceless Assessment Centre (NFAC), erred in assuming jurisdiction under Section 151A read with Section 144B of the Income-Tax Act, 1961, from December 23, 2021, when not empowered by any notification prior to March 29, 2022, for making income escaping assessment in a faceless manner? (Question of law) 3. Whether the Assessing Officer ought not to have considered the sale proceeds of Rs. 1,68,91,300/- as unexplained under Section 69A, instead of considering the profit element embedded in these sales as income? (Question of mixed law and fact) Assessee's Contentions: - Ground 1: The order of the CIT(A) is against the principle of natural justice. - Ground 2: The AO and CIT(A) lacked jurisdiction to issue notice in the reassessment case under Section 147 prior to March 29, 2022, in a faceless manner, as they were not empowered by any notification under Section 151A before that date. Relied on: Naibul Industrial Metal Pvt. Ltd Vs ITO (ITA No. 1328/2024), Tatun Guha Vs ITO (ITA No. 1644/2025/KOL), Sushanta Ghosh Vs. ITO (ITA No. 2533/Kol/2025). - Ground 3: The AO should have considered the profit element in the sale proceeds of Rs. 1,68,91,300/- as income, not the entire sale proceeds as unexplained under Section 69A. The CIT(A) should have modified the assessment order. Revenue's Contentions: - The issue of jurisdiction (Ground 2) was not raised before the lower authorities.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144B,Section 69A,Section 151A,Section 250,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey

Per Pradip Kumar Choubey, Judicial Member:

This appeal filed by the assessee is directed against the order dated 20.09.2025 of the Office of the National Faceless Appeal Centre (NFAC), Delhi passed under Section 147 of the Assessment Year 2015-16 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”). At the very outset it appears from the report of the Registry that the appea

The order continues below.

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