M/S. ELEGANT VINIMOY PVT. LTD.,KOLKATA vs. I.T.O., WARD - 5(1), KOLKATA

ITA 2525/KOL/2026Status: DisposedITAT Kolkata07 October 2026AY 2012-20139 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal admitted the additional ground for adjudication, relying on the decision of the Hon'ble Apex Court in CIT Vs. National Thermal Power Co. Ltd. (Supra), as it was a purely legal issue not requiring further factual verification. The Tribunal found that Section 151A of the Act, dealing with faceless assessment of income escaping assessment, was brought onto the statute book with effect from 01.11.2020 but was notified and made effective only on 29.03.2022. Since the assessment proceedings, including the notice under Section 142(1) dated 03.08.2021 and the assessment order dated 13.09.2021, were initiated and framed prior to 29.03.2022, the NFAC assumed jurisdiction without authority. Consequently, the assessment order passed by the AO was held to be without jurisdiction and unsustainable. The Tribunal followed the decision of a co-ordinate bench in MD Mahimud SK Vs. ITO and Nabiul Industrial Metal Pvt. Ltd. VS. I.T.O. The assessment order was quashed, and the appeal of the assessee was allowed.

What were the facts?

The assessee, M/s Elegant Vinimay Pvt. Ltd., filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 18.06.2026, for Assessment Year (AY) 2012-13. The assessee raised an additional ground challenging the jurisdiction of the NFAC under Section 151A read with Section 144B of the Income Tax Act, 1961, arguing that the assessment framed prior to 29.03.2022 was invalid. The assessment proceedings for AY 2012-13 were initiated with a notice under Section 142(1) dated 03.08.2021. The Assessing Officer (AO) passed an assessment order dated 13.09.2021, assessing total income at ₹1,60,55,216/-. The NFAC, Delhi, passed the impugned appellate order dated 18.06.2026, which the assessee is challenging.

What were the issues?

1. Whether the assessment framed by the National Faceless Assessment Centre (NFAC) prior to 29.03.2022 is invalid and not in accordance with law, thus liable to be quashed, turning on the provisions of Section 151A and Section 144B of the Income Tax Act, 1961. Assessee's contentions: The provisions of Section 151A of the Act came into effect on 01.11.2020 but were notified on 29.03.2022. The assessment proceedings for AY 2012-13, including the notice under Section 142(1) dated 03.08.2021, were initiated prior to the notification date. Therefore, the assumption of jurisdiction by NFAC was without jurisdiction. The assessee relied on Jute Corporation of India Ltd. Vs CIT (187 ITR 688 SC) and National Thermal Power Co. Ltd v. CIT [1998] 229 ITR 383 (SC). Revenue's contentions: The additional ground was not raised before the authorities below and therefore the assessee should be precluded from raising it at this stage.

Which sections of the Income-tax Act were involved?

Section 151A,Section 144B,Section 142(1),Section 143(3),Section 254

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri Sunil Surana, AR
For Respondent: Shri Nilkantha Chakraborty, DR
Hearing: 21.09.2026Pronounced: 07.10.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 18.06.2026 for the AY 2012-13. 2. The assessee has challenged the appellate order passed by the ld. CIT (A) on various grounds of appeal as mentioned in the memorandum of appeal. Besides the assessee has raised an additional ground challenging the juri iction of national faceless assessment centre u/s 151A read with section 144B of the Act when it did not have any power. First of all, we M/s Elegant Vinimay Pvt. Ltd.; A.Y. 2012-13 shall adjudicate the additional ground raised, which is extract

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 151A

All 862 judgments and leading authorities on Section 151A →

Recent GST High Court judgments

Search GST case law →