MEENAKSHI MITTAL AGARWAL,GANGTOK, SIKKIM vs. I.T.O., WARD - 3(1),, GANGTOK

ITA 111/KOL/2026Status: DisposedITAT Kolkata07 April 2026AY 2014-20157 pages

AI SummaryAllowed

Facts

The assessee filed appeals against assessment orders passed by the National Faceless Assessment Centre (NFAC). The assessment orders were passed on March 8, 2022, and March 28, 2022, respectively. The NFAC's authority to pass such orders became effective on March 29, 2022.

Held

The Tribunal held that the assessment orders passed by the NFAC were issued prior to the effective date of its jurisdiction. Therefore, the NFAC acted without jurisdiction when passing these orders, making them invalid.

Key Issues

Whether the assessment orders passed by the NFAC before the effective date of its jurisdiction are liable to be quashed for want of jurisdiction.

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI MANJUNATHA G.

For Appellant: Shri S. K. Pransukha, AR

For Respondent: Shri Sandeep Lakra, Addl. CIT, Sr. DR

Hearing: 07.04.2026Pronounced: 07.04.2026

ORDER Per Bench: These are the two appeals filed by the assessee against the orders of the Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2013-14/10146804 & NFAC/2014-15/10109339 both dated 15.02.2025 for the assessment years 2014-15 & 2015-16.

2. Shri S. K. Pransukha, AR, represented on behalf of the assessee and Shri Sandeep Lakra, Sr. DR represented on behalf of the revenue.

3. At the time of hearing, the ld. AR has raised the following additional grounds:

1. ITA No.111&112/Kol/2026 “1. On facts and circumstances and in law, the assessment order dt 08.03.2022 under section 147 rws 144, 144B is invalid as order has been passed pursuance to search action 132 on 30.11.2017 (before 01.04.2021) in the premises of her husband Shri Sanjay Mittal Agarwal whereas same should have been passed under section 153C.

2. On facts and circumstances of the case, National faceless Assessment Centre (NFAC) erred in having assumed jurisdiction u/s 151A r.w.s 144B of the I.T. Act 1961 and passed assessment order on 08.03.2022 in faceless manner without having any jurisdiction in terms of 151A and scheme there under which is effective from 29.03.2022.

Appellant crave leave for add, delete, modify any other ground at or before hearing.”

It was submitted by the ld. AR that in both cases, the assessment orders in the case of the assessee have been passed on 08.03.2022 by the NFAC. It was the submission that the NFAC got the power to pass assessment order only w.e.f. 29.03.2022. It was the submission that the issue is squarely covered by the decision of Coordinate Cuttack Bench of this Tribunal Nand Kumar Choudhury vs. ITO in dated 22.09.2025 wherein the Coordinate Bench has held as follows:

It was submitted by the ld. AR that the assessment order in the case of assessee has been passed by the NFAC on 28.03.2022. It was the submission that the Notification by which the National Faceless Assessment Centre was made effective is dated 29.03.2022. It was the submission that consequently the assessment order passed on 28.03.2022 is liable to be quashed. Ld. AR placed reliance on the decision of the coordinate bench of the Tribunal in the case of Md. Mahimud SK in pronounced on 04.03.2025, wherein in para 10 to 12, the coordinate bench of the Tribunal has held as under :- “010. After hearing the rival contentions and perusing the materials available on record, we find that the notice to the assessee was issued u/s 148 of the Act on 31.03.2021, through e-mail after the case was reopened u/s 147 of the Act. Notice u/s 143(2) read with section 147 of the Act was issued on 29.06.2021 and thereafter, the proceedings would taken over by National Faceless Centre, Delhi and notice u/s 142(1) dated 09.02.2022, was issued and thereafter show cause was issued to assessee by the NFAC on 17.03.2022.

11.

We have perused the section of Section 151A of the Act, which deals with the faceless assessment of income escaping assessment and was brought on the statute book by taxation and other law (realization and amendment of certain provisions) Act, 2020, with effect from 01.11.2020 which was notified on 29.03.2022 vide notification no.18/2022/F. No. 370142/16/2022-TPL(Part)]. Therefore, the assessment proceedings were taken by the National Faceless Assessment Centre, Delhi by issuing notice u/s 142(1) dated 09.02.2022 and thereafter the assessment was framed accordingly after issuing show cause notice which in our opinion is without jurisdiction. The provision of Section 151A of the Act were brought on the statute book with effect from 01.11.2020. However, the same were made effective and applicable with effect from 29.03.2022 vide notification no. when the CBDT notified the new scheme for assessment of income escaping assessment scheme, 2022. In our considered view the assessment framed is without jurisdiction and cannot be sustained. The case of the assessee find force from the decision of Nabiul Industrial Metal Pvt. Ltd., Paschim Medinipur VS. I.T.O., in for A.Y. 2017-18, the order dated 15.10.2024, wherein a similar issue has been decided in favor of the assessee. For the sake of ready reference, the notice issued u/s 142(1) dated 09.02.2022 and show cause notice dated 17.03.2022, are extracted below:-

12.

Considering the above facts and legal position, we are of the considered opinion that the order passed by the NFAC, Delhi is without jurisdiction and is hereby quashed. The appeal of the assessee is allowed. 3. It was the submission that the assessment year in the impugned appeal is liable to be quashed as the assessment order has been passed by the NFAC on 28.03.2022. 4. In reply, ld. Sr. DR vehemently supported the orders of the ld. AO and ld.CIT(A). It was the submission that there are no other decisions on this issue and, therefore, the appeal may be heard on merits. 5. We have considered the rival submissions. Here in the appeal on merits would have no implication, insofar as on the technicality itself the issue has been held against the revenue by the coordinate bench of the Tribunal in the case of Md. Mahimud SK, referred to supra, wherein one of us is a party to the order. This being so, the decision of the coordinate bench of the Tribunal in the case of Md. Mahimud SK, referred to supra, as it is noticed that the assessment order has been passed by the NFAC on 28.03.2022 being prior to the date of notification is bad in law and consequently the same stands quashed.” 5. It was the submission that the assessment orders are liable to be quashed as the same is without jurisdiction.

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

&112/Kol/2026 7. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessment orders have been passed by NFAC on 08.03.2022 in both cases. The notices have been issued giving powers to NFAC to pass assessment orders on 29.03.2022. Consequently, the NFAC did not have the power to pass the assessment orders till 29.03.2022. The impugned assessment orders have been passed by the NFAC in both cases before the effective date i.e. 29.03.2022. This being so, the impugned assessment orders stand quashed.

In the result, the appeals of the assessee stand allowed.

Order pronounced in the open court on 07/04/2026.