RAJIB SARKAR,RAIGANJ vs. ITO, WARD 2(4),, RAIGANJ

आयकर अपीलीय अधिकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No.2781/Kol/2025 Assessment Year: 2015-16 Rajib Sarkar……………….....……..………………….……….……….……Appellant Chotparua, Karnajora, Raiganj, North Dinajpur-733130.. [PAN: BAYPS4660R] vs. ITO, Ward-2(4), Raiganj..…...……...…………………….....……...…..…..Respondent Appearances by: Shri Sujit Basu, Advocate, appeared on behalf of the appellant. Shri S B Chakraborthy, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : February 04, 2026 Date of pronouncing the order : February 24, 2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 07.10.2025 of the NFAC, Delhi passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2015–16. 2. Brief facts of the case of the assessee are that the assessee filed his return of income declaring income of Rs.9,19,560/- and the return had been accepted u/s. 143(1) and no scrutiny was done. Subsequently, the assessment was reopened on the ground that the assessee had not offered the entire sale consideration of shares for Rs.59,75,190/- in his return on sale of his shares.

ITA No.2781/Kol/2025 Rajib Sarkar The Assessing Officer completed the assessee u/s 147 r.w.s. 144B of the Act by treating the entire sale proceeds of shares for Rs.59,75,190/- as unexplained investment u/s 69 of the Act. 3. Being aggrieved by the above order, the assessee preferred an appeal before the ld. CIT(A) wherein the appeal of the assessee has been dismissed. 4. Aggrieved and dissatisfied, the present appeal has been preferred by the assessee. The ld. AR of the assessee challenges the impugned order by taking a ground which reads as under: “For that on the facts and circumstances and legal position of the case, the Ld. AO, National faceless Assessment Centre (NFAC) erred in having assumed jurisdiction under section 151A, read with section 144B of the Income Tax Act, 1961 from 15.3.2022 when he was not empowered under any Notification under section 151A about the applicability of the faceless scheme for making income escaping assessment in faceless manner prior to 29.3.2022. The Ld. CIT(A) ought to have cancelled the assessment order made by the Ld. AO, NFAC.” 5. The Ld. Counsel for the assessee submitted that the provisions of Section 151A of the Act came in the statute on 01.11.2020 but it was notified with effect from 29.03.2022. But in the present case, assessment proceedings to the NFAC started on 15.03.2022 which is evident from the notice u/s 142(1) of the Act. The ld. counsel for the assessee further submits that the assumption of jurisdiction by the NFAC was without jurisdiction and consequently, the whole assessment is without jurisdiction and unsustainable in law. 6. Contrary to that, the ld. DR supports the impugned order and submits that in this case, the assessment order was passed on 31.03.2022 after the date of the said Notification dated 29.03.2022, therefore, the appeal of the assessee may be rejected.

ITA No.2781/Kol/2025 Rajib Sarkar 7. We have considered the submissions of both the parties and perused the records. It is pertinent to mention the said Notification with respect to Section 151A of the Act with effect from 29.03.2022 as under:

“S.O. 1466(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 151A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following Scheme, namely:- 1. Short title and commencement.—(1) This Scheme may be called the e- Assessment of Income Escaping Assessment Scheme, 2022. (2) It shall come into force with effect from the date of its publication in the Official Gazette. 2. Definitions.—(1) In this Scheme, unless the context otherwise requires, — (a) “Act” means the Income-tax Act, 1961 (43 of 1961); (b) “automated allocation” means an algorithm for randomised allocation of cases, by using suitable technological tools, including artificial intelligence and machine learning, with a view to optimise the use of resources. (2) Words and expressions used herein and not defined, but defined in the Act, shall have the meaning respectively assigned to them in the Act. 3. Scope of the Scheme.—For the purpose of this Scheme,— (a) assessment, reassessment or re-computation under section 147 of the Act, (b) issuance of notice under section 148 of the Act, shall be through automated allocation, in accordance with risk management strategy formulated by the Board as referred to in section 148 of the Act for issuance of notice, and in a faceless manner, to the extent provided in section 144B of the Act with reference to making assessment or reassessment of total income or loss of assessee.” 7.1 We have also gone through the notice u/s 142(1) of the Act dated 15.03.2022 which is as follows:

ITA No.2781/Kol/2025 Rajib Sarkar

7.2 Keeping in view the above facts and discussions, we find that NFAC while passing the assessment order dated 31.03.2022 issued notice u/s 142(1) of the Act on 15.03.2022 and in this case, the assumption of jurisdiction under section 151A of the Act by the Assessing Officer is prior to 29.03.2022. Accordingly, we quash the assessment order and all subsequent proceedings are also quashed.

ITA No.2781/Kol/2025 Rajib Sarkar 8. In the result, the appeal filed by the assessee is allowed.

Kolkata, the 24th February, 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

Dated: 24.02.2026. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches