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Facts
The assessee, a fruit vendor, failed to file a return of income. The department initiated reassessment proceedings under section 147 and 148 of the Income Tax Act, 1961, alleging income had escaped assessment due to deposits in bank accounts. The Assessing Officer added a sum as unexplained money and interest income. The CIT(A) confirmed the AO's order.
Held
The Tribunal held that the assessment framed by the National Faceless Assessment Centre was without jurisdiction because the provisions for faceless assessment under Section 151A were notified after the assessment order was passed. Consequently, the assessment was quashed as null and void.
Key Issues
The key issue was the validity of the assessment order passed by the National Faceless Assessment Centre due to lack of jurisdiction, as the relevant provisions for faceless assessment were not yet notified at the time of assessment.
Sections Cited
147, 148, 143(2), 142(1), 151A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “PATNA” BENCH, PATNA
Before: SHRI DUVVURU RL REDDY, VP & SHRI 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 21.02.2025 for the AY 2017-18.
At the outset, we note that the appeal of the assessee is barred by limitation by 105 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal by referring to condonation petition. The Ld. D.R did not raise any objection to condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and hence, we condone the delay and admit the appeal for adjudicate.
The facts in brief are that the department was in possession of the information that the assessee has deposited ₹1,30,12,790/- in to the bank account during the year and has not filed any return of income. Accordingly, the income to that extent has escaped assessment. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 29.03.2021, which was complied with by filing a return of income on 28.04.2021, declaring income of ₹7,40,610/-. Thereafter, notice u/s 143(2) and 142(1) of the Act were issued along with questionnaire and were complied with by the assessee. The assessee is a fruit vendor and during the year deposited a cash of ₹1,15,93,650/- in the ICICI current account number 500538 and not ₹1,30,12,790/-. The ld. AO added the amount of ₹1,25,93,150/- as unexplained money and also interest income of ₹16,620/- to the income of the assessee.
In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. Assessing Officer
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 14.03.2022, 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 6.1. Therefore, respectfully following the above decisions , we quash the assessment framed by the assessee.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26.02.2026.