MOHAMMAD NAZIM AHMAD,NALANDA V. ITO, WARD-2(3), BIHARSHARIFF, BIHARSHARIFF

ITA 371/PAT/2025

AI Insights

The case involves Mohammad Nazim Ahmad, a fruit vendor, who appealed against the assessment order issued by the National Faceless Assessment Centre, which added unexplained money and interest income to his declared income for the assessment year 2017-18. The primary contention was the jurisdictional validity of the assessment order, as it was issued before the official notification of faceless assessment provisions. The tribunal, referencing several precedents, concluded that the assessment was null and void due to lack of jurisdiction.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839893 (ITAT-PATNA)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 13-08-2025
• Other Referred Cases: MD Mahimud SK Vs ITO ITA No. 2230 & 2229/Kol/2024, Kankanala Ravindra Reddy vs. Income-tax Officer [2023] 156 taxmann.com 178 (TELANGANA), Triton Overseas (P.) Ltd. vs. Union of India [2023] 156 taxmann.com 318 (Calcutta), Samp Furniture (P.) Ltd. vs. Income-tax Officer [2025] 477 ITR 187 (Bombay)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: S AK RASTOGI
• Section: 147; 148; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No.371/PAT/2025 (Assessment Year: 2017-18) Mohammad Nazim Ahmad Moh. Pakki Talab, Pilikothi, Biharshariff, Nalanda, Patna-803101 Vs. ITO, Ward-2(3), Biharshariff Patna, Bihar (Appellant) (Respondent) PAN No. BOAPA8788J Assessee by : S/Shri AK Rastogi Rakesh Kumar, ARs Revenue by : Shri Ashwani Kr. Singal, DR Date of hearing: 28.11.2025 Date of pronouncement: 26.02.2026 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 21.02.2025 for the AY 2017-18. 2. At the outset, we note that the appeal of the assessee is barred by limitation by 105 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal by referring to condonation petition. The Ld. D.R did not raise any objection to condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and hence, we condone the delay and admit the appeal for adjudicate. Printed from counselvise.com Page | 2 ITA No. 371/PAT/2025 Mohammad Nazim Ahmad; A.Y. 2017-18 3. At the time of hearing, the ld. Counsel for the assessee pressed only one issue which is against the invalid assessment framed by the National Faceless Appeal Centre, Delhi [the learned CIT (A)] vide order dated 14.03.2022, which is without jurisdiction and is accordingly, invalid. 4. The facts in brief are that the department was in possession of the information that the assessee has deposited ₹1,30,12,790/- in to the bank account during the year and has not filed any return of income. Accordingly, the income to that extent has escaped assessment. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 29.03.2021, which was complied with by filing a return of income on 28.04.2021, declaring income of ₹7,40,610/-. Thereafter, notice u/s 143(2) and 142(1) of the Act were issued along with questionnaire and were complied with by the assessee. The assessee is a fruit vendor and during the year deposited a cash of ₹1,15,93,650/- in the ICICI current account number 500538 and not ₹1,30,12,790/-. The ld. AO added the amount of ₹1,25,93,150/- as unexplained money and also interest income of ₹16,620/- to the income of the assessee. 5. In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. Assessing Officer 6. After hearing the rival contentions and perusing the materials available on record, we find that the assessment has been framed by the National Faceless Assessment Centre vide order dated 14.03.2022, which in our opinion, is without jurisdiction as the Provisions of Section 151A of the Act which provides for faceless assessment were notified from 29.03.2022 vide notification no. 18/2022/F. No. 370142/16/2022-TPL(Part). Though the same were Printed from counselvise.com Page | 3 ITA No. 371/PAT/2025 Mohammad Nazim Ahmad; A.Y. 2017-18 brought on statute book by the Taxation and Other Law (realization and amendment of certain provisions) Act, 2020 with effect from 01.11.2020. considering these facts, the assessment framed by the National Faceless Appeal Centre is null and void as the same is without jurisdiction and cannot be sustained. The case of the assessee find support from the decision of the co-ordinate Bench in case MD Mahimud SK Vs ITO ITA No. 2230 & 2229/Kol/2024 order dated 4.3.2025. Similarly, the Telangana High Court in case of Kankanala Ravindra Reddy vs. Income-tax Officer [2023] 156 taxmann.com 178 (TELANGANA)/[2023] 295 Taxman 652 (TELANGANA)[14-09-2023], Hon'ble Jurisdictional High Court in case of Triton Overseas (P.) Ltd. vs. Union of India [2023] 156 taxmann.com 318 (Calcutta)[13-09-2023], Samp Furniture (P.) Ltd. vs. Income-tax Officer [2025] 477 ITR 187 (Bombay)[05-08-2024]. 6.1. Therefore, respectfully following the above decisions , we quash the assessment framed by the assessee. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 26.02.2026. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.02.2026 Sudip Sarkar, Sr.PS Printed from counselvise.com Page | 4 ITA No. 371/PAT/2025 Mohammad Nazim Ahmad; A.Y. 2017-18 Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "