SUSHANTA GHOSH,HOOGHLY vs. I.T.O., WARD - 24(1),, HOOGHLY

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ITA 2533/KOL/2025Status: HeardITAT Kolkata26 February 2026AY 2014-20153 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment framed by the National Faceless Assessment Centre (NFAC) was without jurisdiction and therefore invalid. The Tribunal noted that Section 151A of the Income-tax Act, 1961, which provides for faceless assessments, was notified from 29.03.2022, although it was brought on the statute book earlier. The assessment order in question was passed before the notification date. Therefore, the assessment was considered null and void. The Tribunal relied on decisions from its co-ordinate bench in MD Mahimud SK Vs ITO, the Telangana High Court in Kankanala Ravindra Reddy vs. Income-tax Officer, the jurisdictional Calcutta High Court in Triton Overseas (P.) Ltd. vs. Union of India, and the Bombay High Court in Samp Furniture (P.) Ltd. vs. Income-tax Officer, which dealt with identical issues in favour of the assessee. Consequently, the assessment framed by the AO was quashed. No issue was expressly left undecided.

What were the facts?

The assessee, Sushanta Ghosh, engaged in trading paddy and allied products, filed a return for AY 2014-15 declaring an income of ₹4,80,200. The Revenue noted ₹12,16,00,000 credited to the assessee's bank account which was not accounted for, leading to a belief of escaped assessment. The Assessing Officer (AO) reopened the assessment under Section 147 by issuing a notice under Section 148 on 27.03.2021, which was not complied with. Subsequent notices under Section 142(1) also went unheeded. Consequently, the AO added ₹12,16,00,000 to the assessee's income, assessing the total income at ₹12,20,80,200. The National Faceless Appeal Centre (NFAC), Delhi, confirmed the AO's order. The assessee appealed to the ITAT against the NFAC's order.

What were the issues?

1. Whether the assessment framed by the National Faceless Assessment Centre (NFAC) for AY 2014-15 is invalid due to lack of jurisdiction, considering the notification dates of Section 151A of the Income-tax Act, 1961. Assessee's contention: The assessment framed by the NFAC is without jurisdiction and therefore invalid. The provisions of Section 151A, which provide for faceless assessment, were notified from 29.03.2022, while the assessment order was passed prior to this date. The assessment is thus null and void. Revenue's contention: The judgment records no specific contention from the Revenue regarding the jurisdiction of the NFAC.

Which sections of the Income-tax Act were involved?

Section 151A,Section 147,Section 148,Section 142(1),Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Somnath Ghosh, AR
For Respondent: Shri Sanat Kumar Raha, DR
Hearing: 21.01.2026Pronounced: 26.02.2026

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 07.10.2025 for the AY 2014-15.

2.

At the time of hearing, the ld. Counsel for the assessee pressed only one issue which is against the invalid assessment framed by the National Faceless Appeal Centre, Delhi [the learned CIT (A)] vide order dated 22.03.2022, which is without jurisdiction and is accordingly, invalid.

3.

The facts in brief are that the assessee engaged in the business of trading of paddy and allied products. The assessee filed the return of

4.

In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. Assessing Officer.

5.

After hearing the rival contentions and perusing the materials available on record, we find that the assessment has been framed by the National Faceless Assessment Centre vide order dated 22.03.2022, which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless assessment were notified from 29.03.2022 vide notification no. 18/2022/F. No. 370142/16/2022-TPL(Part) though the same were brought on statute book by the Taxation and Other Law (realization and amendment of certain provisions) Act, 2020 with effect from 01.11.2020. Considering these facts, the assessment framed by the National Faceless Appeal Centre is null and void as the same is without jurisdiction and cannot be sustained. The case of the

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 26.02.2026.

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