Lingaraj Debta Vs ITO (ITAT Cuttack)
Summary: The Income Tax Appellate Tribunal, Cuttack Bench allowed the assessee’s appeal for AY 2013-14 and quashed the reassessment after holding that the National Faceless Assessment Centre (NFAC) lacked jurisdiction when it issued the show-cause notice dated 24.03.2022. The appeal arose from the order of the NFAC, Delhi/CIT(A) dated 25.09.2025. The assessee submitted that NFAC’s jurisdiction to frame faceless reassessment was notified only from 29.03.2022 through Notification No. 18/2022/F. No. 370142/16/2022-TPL(Part) under Section 151A of the Income-tax Act, 1961. Therefore, according to the assessee, the show-cause notice issued by NFAC on 24.03.2022 was without jurisdiction and the consequential assessment could not survive. The assessee relied upon the coordinate bench decisions in Trinity Enclave Pvt. Ltd. v. ITO and Nabiul Industrial Metal Pvt. Ltd. v. ITO. The Revenue supported the order of the CIT(A). The Tribunal held that the issue was squarely covered by these coordinate bench decisions. It observed that NFAC obtained jurisdiction under the notification relating to Section 151A only from 29.03.2022. Consequently, the show-cause notice dated 24.03.2022 was held invalid and quashed. The consequential assessment order was also quashed and the assessee’s appeal was allowed.
Cases Discussed
- Trinity Enclave Pvt. Ltd. v. ITO, ITA No. 1728/Kol/2025 — followed on the issue that NFAC did not have jurisdiction prior to 29.03.2022 to issue the relevant notice under the faceless reassessment framework.
- Nabiul Industrial Metal Pvt. Ltd. v. ITO, ITA No. 1328/Kol/2024, order dated 15.10.2024 — relied upon as a coordinate bench decision on the same jurisdictional issue.
- MD Mahimud SK v. ITO, ITA Nos. 2230 & 2229/KOL/2024, order dated 04.03.2025 — discussed in the extracted portion of the decision in Trinity Enclave Pvt. Ltd.
FULL TEXT OF THE JUDGMENT/ORDER OF ITAT CUTTACK
