ITO Vs Ajit Singh (ITAT Agra)
Faceless vs Technical Constraints: Tribunal Backs JAO Under 17.03.2022 Circular -CIT(A)’s Non-Est Finding Overturned
Revenue appealed against CIT(A)-NFAC’s order which had quashed reassessment as non-est on the ground that assessment pending as on 01.04.2021 must be completed only through faceless procedure u/s 144B, relying on CBDT Instruction F.No.187/3/2020-ITA-I dated 31.03.2021. Assessee had not filed return for AY 2013-14; JAO issued notice u/s 148 on 30.03.2021, framed reassessment u/s 144 r.w.s.147 on 30.03.2022 making additions aggregating to Rs.3.81 crore based on cash deposits, credit card spend, property sale & lottery income. CIT(A) held that since assessment remained “pending” on 01.04.2021 & was not transferred to faceless unit, the order passed by JAO was without jurisdiction.
Before Tribunal, Revenue relied on CBDT Circular dated 17.03.2022 , granting explicit relaxation permitting JAOs to complete assessments whose limitation expired on 31.03.2022, even if faceless mechanism could not be followed due to technical/procedural constraints. Tribunal held that this Circular squarely applied; reassessment framed by JAO on 30.03.2022 was valid. Therefore, CIT(A)’s conclusion that assessment was non-est was erroneous. Since CIT(A) had not adjudicated the merits of Assessee’s other grounds, Tribunal restored the matter to CIT(A)-NFAC for de-novo adjudication on all remaining issues. Revenue’s appeal allowed for statistical purposes.
