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Facts
The assessee preferred an appeal against the order of the National Faceless Appeal Centre (NFAC). The assessment order was passed by the ITO u/s 144 r.w.s 147 of the Income Tax Act, 1961. The assessee raised grounds questioning the assumption of jurisdiction u/s 147 and the validity of approval u/s 151.
Held
The Tribunal noted that the assessee failed to appear before the Ld. First Appellate Authority, and the legal grounds raised by the assessee were not considered by the NFAC. Therefore, the Tribunal set aside the impugned order and restored the issue to the file of the Ld. CIT(A) for fresh consideration on merits and law.
Key Issues
Whether the assumption of jurisdiction u/s 147 and the approval u/s 151 were valid? Whether the NFAC correctly considered the legal grounds raised by the assessee?
Sections Cited
144, 147, 151, 148
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Income Tax Appellate Tribunal, “C” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI NAVEEN CHANDRA
This appeal is preferred by the assessee against the order dated 06.12.2024 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & assessment order dated 18.11.2019 passed u/s 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 5, Panipat for AY: 2012-13.
On hearing both sides, we find that among other grounds on merits assessee has raised grounds questioning the assumption of jurisdiction u/s 147 of the Act and alleging that approval u/s 151 of the Act is not in accordance with law and similar grounds were raised before the ld. CIT(A) including ground that notice u/s 148 of the Act was not issued and served on the assessee.
However, what we find is that assessee had failed to appear before Ld. First Appellate Authority and so also the assessment order was concluded u/s 144 r.w.s 147 of the Act.
The Ld. Counsel has stressed for consideration of legal grounds here.
However, as the legal grounds raised have not been considered by the NFAC.
We consider it appropriate to set aside the impugned order and restore the issue on merits as well as law to the files of ld. CIT(A) to give fresh Order pronounced in the open court on 04.12.2025