Loading judgment…
Facts
The assessee filed an appeal against an order of the National Faceless Appeal Centre for AY 2013-14. During the hearing, the assessee sought to raise an additional ground challenging the jurisdiction of the National Faceless Assessment Centre (NFAC) to pass a reassessment order.
Held
The Tribunal admitted the additional ground as it involved a pure legal issue with all necessary facts on record. It was held that the NFAC assumed jurisdiction to frame the assessment prior to the effective date of Section 151A of the Act, making the assessment order void ab initio and without jurisdiction.
Key Issues
Whether the reassessment order passed by the National Faceless Assessment Centre was without jurisdiction due to its assumption of jurisdiction prior to the notification of Section 151A of the Income-tax Act.
Sections Cited
147, 144B, 151A, 144, 139(1), 148, 142(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
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 & 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.