Asit Dasgupta Vs Assessing Officer (ITAT Kolkata)
Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has addressed a procedural anomaly within the National Faceless Appeal Centre (NFAC), Delhi, by setting aside a redundant assessment order. In the case of Asit Dasgupta Vs Assessing Officer, the Tribunal confirmed that a subsequent order issued by the NFAC for the Assessment Year 2015-16 was a duplicate of an earlier, already-concluded appeal, underscoring the need for improved internal communication within tax authorities.
The matter originated with individual taxpayer Asit Dasgupta, whose electronic income tax return for AY 2015-16 was selected for scrutiny. After formal notices under Sections 143(2) and 142(1) of the Income Tax Act were issued and responded to by Mr. Dasgupta’s authorized representative, the assessment concluded with an addition of ₹26,20,268 to his total income, categorized as “Under-casting of Sales.” This led Mr. Dasgupta to file an appeal with the Commissioner of Income Tax (Appeals). The CIT(Appeals) subsequently issued an order on October 15, 2019, partly allowing Mr. Dasgupta’s appeal, a decision he accepted and complied with by paying the adjusted taxes.
However, a procedural oversight occurred when the National Faceless Appeal Centre (NFAC), Delhi, inexplicably issued another appellate order on March 27, 2024, concerning the identical assessment year and issue. This unexpected second order prompted Mr. Dasgupta to seek recourse from the ITAT, arguing that the subsequent order lacked legal standing since his appeal had already been finalized. During the ITAT hearing, Mr. Dasgupta’s counsel provided documentation affirming the conclusive resolution of the appeal by the CIT(Appeals) in October 2019. The Departmental Representative acknowledged the error, admitting that the NFAC’s issuance of the March 2024 order was a mistake, attributing it to a failure to detect the prior, definitive order due to internal “miscommunication.”
