SATISH KUMAR,PANIPAT V. ITO WARD-1, PANIPAT

ITA 2700/DEL/2025

AI Insights

This case involves an appeal by Satish Kumar against the order of the National Faceless Appeal Centre (NFAC), which arose from an assessment made under section 144 of the Income Tax Act, 1961 for the assessment year 2017-18. The primary legal contention was the absence of a mandatory notice under section 143(2) of the Act, which the assessee argued rendered the assessment invalid. The Tribunal noted the recent amendment by the Finance Act, 2024, which empowered the Commissioner Appeals to set aside assessments made under section 144 and refer them back for fresh evaluation. However, the Tribunal emphasized that such powers should be exercised judiciously and not merely as a routine procedure.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833860 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 24-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: J.B. SHARMA
• Keywords: Set aside; Question of law; Assessment record
• Section: 144

Judgement Text

"P a g e | 1 ITA No. 2700/Del/2025 Satish Kumar (AY: 2017-18) IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2700/Del/2025 (Assessment Year: 2017-18) Satish Kumar C/o JB Sharma, Advocate, 72, BMK Market, NR Hotel Hive, GT Road Panipat – 132103 Vs. ITO-W-1 Aayakar Bhawan, Sector-6, Panipat Haryana - 132103 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: ABJPK6034A Appellant .. Respondent Appellant by : Sh. J.B. Sharma, Adv. Respondent by : Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 29.01.2026 Date of Pronouncement 04.02.2026 O R D E R PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 04.02.2025 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/NFAC/S/250/2024-25/1072895208(1) arising out of the Printed from counselvise.com P a g e | 2 ITA No. 2700/Del/2025 Satish Kumar (AY: 2017-18) order dated 26.12.2019 u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the ITO, Ward-4 for AY: 2017-18. 2. At the time of hearing ld. Counsel has pointed out that assessee’s appeal by the ld. First Appellate Authority has been allowed for statistical purposes by resorting to amendment brought by Finance Act, 2024 by which Commissioner Appeals have been given power u/s 251 of the Act to set aside the assessment made u/s 144 of the Act and refer the cases back to the assessing officer for fresh evaluation. It was submitted that assessee had raised legal ground that mandatory notice u/s 143(2) of the Act has not been issued by competent jurisdictional assessing officer and on that basis the impugned assessment was liable to be quashed and that ground has not been adjudicated. 2.1 Ld. DR has submitted that there is no error in the impugned order as the assessee is not prejudiced by the impugned order of ld. First Appellate Authority and issue can be raised before AO. 3. The Provisio added to sub section (1) (a) to Section 251 of the Act uses the words ‘he may set aside the assessment”. We are of the considered view that the powers given u/s 251 of the Act to Commissioner Appeals, by way of Printed from counselvise.com P a g e | 3 ITA No. 2700/Del/2025 Satish Kumar (AY: 2017-18) Amendment of Finance Act, 2024 are to be exercised like any powers vested with a quasi judicial authority, to be exercised with judiciously. The discretion as exercised should manifest application of mind. Thus it is not that every assessment concluded u/s 144 of the Act, should be ‘set aside’ at first appellate stage. It is for some reasons to be recorded the ld. First Appellate Authority can consider referring the case back for fresh evaluation to the AO. 4. However, where a pure question of law emanating from the assessment record is raised before the ld. First Appellate Authority then merely for the reason that assessment has been completed u/s 144 of the Act the powers to set aside the assessment for fresh evaluation is not justified as independently ld. First Appellate Authority can decide the question of law of wrongful assumption of jurisdiction by the assessing officer, as for that reasons the assessment is based on best judgment u/s 144 or otherwise u/s 143 of the Act, is not of any consequence. 5. In the light of aforesaid the appeal of the assessee is allowed for statistical purposes. We set aside the impugned order of ld. CIT(A) to the extent that the assessee’s legal grounds shall be first adjudicated and Printed from counselvise.com P a g e | 4 ITA No. 2700/Del/2025 Satish Kumar (AY: 2017-18) thereupon only, if needed, the powers of setting aside the assessments to Assessing Officer may be considered. Order pronounced in the open court on 04.02.2026 Sd/- (Manish Agarwal) Sd/- (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 04.02.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "