NAWKIRAN PLYMERS PVT. LTD.(AMALGAMATED WITH NAWKIRAN POLYCHEM PVT. LTD.),KOLKATA V. I.T.O., WARD - 5(1), KOLKATA

ITA 3105/KOL/2025

AI Insights

Nawkiran Plymers Pvt. Ltd. appealed against the order of the National Faceless Appeal Centre, Delhi, which confirmed an assessment made by the Assessing Officer. The assessment included an addition of 18,00,000 under Section 68 of the Income-tax Act, treating it as unexplained cash credit. The primary contention in the appeal was the jurisdictional validity of the assessment, as the faceless assessment provisions under Section 151A of the Act were not in effect when the assessment was made. The Tribunal, referencing several precedents, concluded that the assessment was without jurisdiction and thus invalid.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837987 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 17-12-2025
• 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, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAMPA RAY
• Assessee Lawyers: DEEP AGARWAL
• Keywords: Unexplained cash credit
• Section: 148; 142(1); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM ITA No. 3105/KOL/2025 (Assessment Year:2013-14) Nawkiran Plymers Pvt. Ltd (Amalgamated with Nawkiran Polychem Pvt. Ltd.) 18, Rabindra Sarani, 5th Floor, Gate No.3, Kolkata-700001, West Bengal Vs. ITO Ward 5(1) Aaykar Bhawan, P-7, Chowringhee Square, Kolkata- 700069, West Bengal (Appellant) (Respondent) PAN No. AAOCS4544G Assessee by : Shri Deep Agarwal, AR Revenue by : Shri Pampa Ray, DR Date of hearing: 29.01.2026 Date of pronouncement: 17.02.2026 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 25.11.2025 for the AY 2013-14. 2. 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 13.03.2022, which is without jurisdiction and is accordingly, invalid. 3. The facts in brief are that the assessee filed the return of income on 09.01.2014, declaring total income at ₹33,141/-, which was processed u/s 143(1) of the Income-tax Act, 1961 (the Act). The case of the Printed from counselvise.com Page | 2 ITA No. 3105/KOL/2025 Nawkiran Plymers Pvt. Ltd; A.Y. 2013-14 assessee was re-opened u/s 148 of the Act on 16.03.2021. Notice u/s 143(2) of the Act was issued on 28.09.2021. Accordingly, notices u/s 142(1) along with questionnaire was issued to the assessee on 31.01.2022, 15.02.2022 and 02.03.2022 along with necessary documents. The ld. AO made an addition of ₹18,00,000 u/s 68 of the Act, treating the same as unexplained cash credit and assessed total income of the assessee at ₹18,33,141/-. 4. In the appellate proceedings, the ld. CIT (A) dismissed the appeal of the by confirming the order of the ld. Assessing Officer. 5. After hearing the rival contentions and perusing the materials available on record, I find that the assessment has been framed by the National Faceless Assessment Centre vide order dated 13.03.2022, 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 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- Printed from counselvise.com Page | 3 ITA No. 3105/KOL/2025 Nawkiran Plymers Pvt. Ltd; A.Y. 2013-14 2023], Samp Furniture (P.) Ltd. vs. Income-tax Officer [2025] 477 ITR 187 (Bombay)[05-08-2024]. 5.1. Therefore, respectfully following the above decisions , I quash the assessment framed by the AO/ NFAC. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 17.02.2026. Sd/- (RAJESH KUMAR) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.02.2026 Sudip Sarkar, Sr.PS 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 "