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Facts
The assessee's appeal was preferred against an order by the National Faceless Appeal Centre. The original assessment was for AY 2013-14, where the AO made an addition of ₹41,25,274/- u/s 68 of the Act. The assessee had sold shares of a penny scrip for ₹41,25,274/-, and a notice u/s 148 was issued after information was received.
Held
The Tribunal noted that the appeal was barred by limitation but condoned the delay as the reasons were bonafide. The primary issue was the invalidity of the assessment framed by the National Faceless Appeal Centre due to lack of jurisdiction. The Tribunal found that the notification for faceless assessment was issued after the assessment order, rendering it null and void.
Key Issues
The main issue was whether the assessment framed by the National Faceless Appeal Centre was without jurisdiction and therefore invalid, due to the timing of the notification for faceless assessments.
Sections Cited
143(1), 148, 142(1), 68, 151A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.11.2025 for the AY 2013-14.
At the outset, I note that the appeal of the assessee is barred by limitation by 238 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, I find that the delay is for bonafide and genuine reasons and hence, I condone the delay and admit the appeal for adjudication.
The facts in brief are that the assessee filed the return of income on 23.03.2014, declaring total income at ₹1,51,260/-, which was processed u/s 143(1) of the Income-tax Act, 1961. The case of the assessee was re-opened on the basis of information that the assessee had sold shares of penny scrip, M/s Finalysis Credit and Guarantee Co. Ltd. on Bombay Stock Exchange Platform amounting to ₹41,25,274/-. Notice u/s 148 of the Act was issued on 28.03.2021. in response to the notice, the assessee did not file any return. Accordingly, notice u/s 142(1) along with questionnaire was issued to the assessee. Accordingly to the AO the income to the extent of sale of shares has escaped assessment. The ld. AO made an addition of ₹41,25,274 u/s 68 of the Act, treating the same as unexplained cash credit and assessed total income of the assessee at ₹42,76,534/-.
In the appellate proceedings, the ld. CIT (A) set aside the matter back to the file of the ld. Assessing Officer.
After hearing the rival contentions and perusing the materials available on record, I find that the assessment has been framed by the National Faceless Assessment Centre vide order dated 13.03.2022, which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless
6.1. Therefore, respectfully following the above decisions , I quash the assessment framed by the AO/ NFAC.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 17.02.2026.
Sd/- (RAJESH KUMAR) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.02.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: