DELTA DEALERS PRIVATE LIMITED,KOLKATA vs. INCOME TAX OFFICER WARD NO. 13(1), KOLKATA
Facts
The assessee, Delta Dealers Private Limited, appealed against a reassessment order for AY 2013-14, which was framed by the National Faceless Assessment Centre (NFAC) on 30.03.2022 under section 147. The assessee raised an additional ground challenging NFAC's jurisdiction, arguing that NFAC assumed jurisdiction prior to 29.03.2022, the effective date for the provisions of Section 151A authorizing faceless reassessment. Reassessment proceedings were initiated with a notice under section 148 on 11.05.2020, followed by subsequent notices and a final assessment order on 30.03.2022.
Held
The Tribunal admitted the additional ground as it raised a pure legal issue. It held that the assessment framed by the National Faceless Assessment Centre on 30.03.2022 was without jurisdiction because the provisions of Section 151A of the Act, which enable faceless assessment, were notified and became effective only from 29.03.2022. Consequently, the Tribunal declared the assessment null and void and quashed it, relying on various judicial precedents.
Key Issues
Whether the National Faceless Assessment Centre (NFAC) had valid jurisdiction to frame a reassessment order on 30.03.2022, given that the provisions of Section 151A of the Income-tax Act, 1961, enabling faceless assessment, were effective only from 29.03.2022, and NFAC assumed jurisdiction prior to this date.
Sections Cited
Income Tax Act, 1961: Section 147, Income Tax Act, 1961: Section 144B, Income Tax Act, 1961: Section 151A, Income Tax Act, 1961: Section 139(1), Income Tax Act, 1961: Section 148, Income Tax Act, 1961: Section 142(1), Income Tax Act, 1961: Section 144, Income Tax (Appellate Tribunal) Rules, 1963: Rule 11, Taxation and Other Law (realization and amendment of certain provisions) Act, 2020
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM
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 24.09.2025 for the AY 2013-14.
At the time of hearing the ld. Counsel for the assessee raised additional ground which is extracted as under:-
“That your assessee craves to plead an additional ground with the leave of this Tribunal under Rule 11 of the Income Tax (Appellate Tribunal) Rules, 1963 and ratio laid down by the Hon'ble Supreme Court in the case of NTPC. "That on the facts and in the circumstances of the case and in law, the reassessment order dated 30.03.2022 passed under section 147 read with section 144B of the Income-tax Act, 1961 by the National Faceless Assessment Centre is without
The facts in brief are that in this case the National Faceless Assessment Centre, Delhi has assumed jurisdiction prior to the date of notification on 29.03.2022 issued making the provisions of section 151A effective from that and framed the assessment on 30.03.2022 u/s 147 read with section 144 of the Act. The assessee filed the return of income u/s 139(1) of the Income-tax Act, 1961 on 12.03.2014, declaring total income of ₹951. The case of the assessee
4.1. 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 30.03.2022, 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 assessee find support from the decision of the co-ordinate Bench in case MD Mahimud SK Vs ITO ITA No. 2230 & 2229/Kol/2024 order dated 4.3.2025. Similarly, the Telangana High Court in case of Kankanala Ravindra Reddy vs. Income-tax Officer [2023] 156 taxmann.com 178 (TELANGANA)/[2023] 295 Taxman 652 (TELANGANA)[14-09-2023], Hon'ble Jurisdictional High Court in case
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26.02.2026.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.02.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//
Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata
