Albatross Investment Pvt. Ltd. Vs ITO (ITAT Kolkata)
Notice Issued by NFAC Pre-Notification Invalid — Addition of ₹2.14 Cr Deleted- NFAC Had No Jurisdiction Before 29-03-2022 — Faceless Assessment Without Notification- ITAT Kolkata Quashes Reassessment Order
Assessee raised an additional legal ground challenging jurisdiction of NFAC to frame a reassessment order dated 22.09.2021 u/s 147 r/w 144B. The argument was that NFAC had no authority to issue notices or complete reassessment before 29.03.2022, when CBDT notified the provisions of Section 151A governing faceless reassessment.
The record showed that—
- Notice u/s 143(2) was issued on 27.11.2020,
- NFAC thereafter issued notice u/s 142(1) on 04.02.2021, then SCN on 09.09.2021,
- Final order was passed on 22.09.2021—all BEFORE the effective notification No.18/2022 dated 29.03.2022.
ITAT held that although Section 151A was inserted w.e.f 01.11.2020, it became operational only on 29.03.2022 when CBDT notified the Faceless Assessment of Escaped Income Scheme. Hence, NFAC had no jurisdiction to issue notices or complete assessment during 2020–2021.
The Bench relied on its earlier decisions in MD Mahimud SK, Nabiul Industrial Metal, and Milani Swanirbhar Gosthi—all holding that pre-notification NFAC assessments are void. Accordingly, the reassessment order passed by NFAC was quashed as without jurisdiction, and the Assessee’s appeal was allowed in full.
