DELTA DEALERS PRIVATE LIMITED,KOLKATA vs. INCOME TAX OFFICER WARD NO. 13(1), KOLKATA

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ITA 2582/KOL/2025Status: DisposedITAT Kolkata26 February 2026AY 2013-144 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal admitted the additional ground of appeal raised by the assessee, finding it to be a purely legal issue with all necessary facts already on record, and that an assessee is at liberty to raise such issues before appellate authorities. The Tribunal noted that the assessment was framed by the NFAC on March 30, 2022, which was after the provisions of Section 151A of the Act, providing for faceless assessment, were notified to be effective from March 29, 2022, vide notification no. 18/2022. Although Section 151A was brought on the statute by the Taxation and Other Law (realization and amendment of certain provisions) Act, 2020, with effect from November 1, 2020, the NFAC's assumption of jurisdiction and framing of the assessment order occurred prior to the effective date of the notification enabling such faceless reassessment. Consequently, the Tribunal held that the assessment framed by the NFAC was without jurisdiction and therefore null and void. The Tribunal relied on decisions of a 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. The Tribunal quashed the assessment framed by the AO/NFAC.

What were the facts?

The assessee, Delta Dealers Private Limited, filed its return of income for Assessment Year 2013-14 on March 12, 2014. The case was reopened under Section 147 of the Income-tax Act, 1961, with a notice under Section 148 issued on May 11, 2020. The National Faceless Assessment Centre (NFAC), Delhi, issued notices under Section 142(1) on February 2, 2022, and show cause notices on February 24, 2022, and March 7, 2022. A draft assessment order was issued on March 26, 2022, to which the assessee filed objections on the same day. The Assessing Officer (AO) disposed of the objections on March 27, 2022, and framed the final assessment order on March 30, 2022. The assessee appealed this order to the National Faceless Appeal Centre (NFAC), Delhi, which was dated September 24, 2025. The assessee is now appealing the NFAC's order to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether 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 (NFAC) is without jurisdiction, void ab initio, and liable to be quashed, as the assumption of jurisdiction by NFAC was prior to 29.03.2022, when no notification under Section 151A of the Act was in force authorizing faceless reassessment proceedings? Assessee's contention: The assessee argued that the reassessment order is without jurisdiction and void ab initio because the NFAC assumed jurisdiction before the notification dated 29.03.2022, which made Section 151A effective for faceless reassessment proceedings. The assessee sought to raise this additional ground, citing the Supreme Court's decision in NTPC and relying on facts already on record. The assessee also cited Jute Corporation of India Ltd. Vs CIT, National Thermal Power Co. Ltd v. CIT, and PCIT vs. Britannia Industries Ltd. Revenue's contention: The judgment does not record any specific contentions from the revenue regarding this issue.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 151A,Section 148,Section 142(1),Section 139(1)

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

For Appellant: Shri Akshay Ringasia, AR
For Respondent: Shri Sanjib Kumar Paul, DR
Hearing: 20.01.2026Pronounced: 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 24.09.2025 for the AY 2013-14.

2.

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

4.

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 & 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

5.

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

Order pronounced in the open court on 26.02.2026.

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