ITA No. 4341/Del/2025 G S Automobiles Pvt. Ltd. Vs. DCIT IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘A’: NEW DELHI)

BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 4341/Del/2025 (Assessment Year- 2018-19)

G S Automobiles Private Deputy Commissioner of Limited Vs. Income Tax, B-26, Okhla Industrial Area, Central Circle, 6 Phase-II, South East Delhi, Delhi Tehkhand, Delhi PAN No: AADCG1150B APPELLANT RESPONDENT Assessee by : Shri Neeraj Mangla, CA Revenue by : Sh. Krishna Kumar Ramawat, Sr. DR Date of Hearing : 03.12.2025 Date of Pronouncement : 27.02.2026 ORDER PER MAHAVIR SINGH, VICE PRESIDENT:

This appeal by the Assessee is arising out of the order of Commissioner of Income Tax (Appeals)-24, Delhi, in Appeal No. CIT(A)- Delhi-24/10269/2017-18 vide order dated 23/06/2025. Assessment was framed by A.O. of NFAC, Delhi for Assessment Year 2018-19 u/s 143(3) r.w. Section 143(3A) and 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) vide his order dated 26/02/2021.

2. At the outset, the Ld. Counsel for the Assessee drew our attention to the Ground No. 1 & 2 raised regarding assumption of jurisdiction by the A.O. for framing of assessment under Section143(3) of the Act. The relevant Ground No. 1 & 2 reads as under:-

“1. That the orders passed by Ld. AO u/s 143(3) of the Act as well as appellate order passed by Ld. CIT(A) are bad in law and are passed in contravention of prevailing law as well as facts of the case, therefore liable to be annulled.

2. That the assessment order dated 26/02/2021 passed by Ld. FAO, National e-Assessment Centre is not sustainable under the law as the jurisdiction over the case of assessee company was transferred to central charges by order u/s 127(3) of the Act dated 22/02/2021 and Hon'ble CBDT vide order u/s 119 of the Act dated 13/08/2020 specified that assessment order in cases assigned to Central Charges shall not be passed by National e-Assessment Centre.”

3. The Ld. Counsel for the Assessee drew our attention to the assessment order passed by the A.O. of NFAC, Delhi dated 26/02/2021 under Section 143(3) of the Act. The Ld. Counsel then took us through the order of PCIT, Delhi passed u/s 127(3) of the Act dated 22/02/2021 which is enclosed in Assessee’s Paper Book Page No. 1 & 2. The Ld. Counsel drew our attention to Item No. 2 in the table and stated that the Jurisdiction of the A.O. from Ward 10(3), New Delhi transferred to CC 06, New Delhi and the relevant chart reads as under:

4. The Ld. Counsel for the Assessee stated that once the Jurisdiction of the Assessee was transferred to Central Circle 06, New Delhi vide order under Section 127(3) dated 22/02/2021, the assessment cannot be framed by the A.O. NFAC, where as assessment has to be framed by the A.O. of Central Circle i.e. Central Circle-06, New Delhi. The Ld. Counsel for the Assessee stated that since from 22/02/2021 onwards, Jurisdiction over the case of the Assessee was with central charge, the assessment order framed by National E-Assessment Centre, NFAC is bad in law and accordingly it needs to be quashed. The Ld. Counsel also relied on the order u/s 119 dated 13/08/2020, wherein CBDT vide F. No. 187/3/2020-ITA-1 has categorically issued order that of assessments assigned to central charge and assigned to International Tax Charge cannot be passed by the Faceless Assessing Officer. He drew our attention to the relevance CBDT Order and the same reads as under:-

“Subject Order under section 119 of the Income-tax Act, 1961 With the launch of various e-governance initiatives, Income-tax Department is moving toward total computerization of its work. This has led to a significant improvement in delivery of services and has also brought greater transparency in the functioning of the administration. tax-administration.

2. In