ITAT Remands Reassessment Case to CIT(A) to Examine Faceless Assessment Jurisdiction :

Singhal Tradexim Private Limited filed an appeal before the Delhi ITAT against the order dated 29 October 2025 passed by the CIT(A) for Assessment Year 2014-15. The assessee had challenged the reassessment proceedings on several grounds, including non-compliance with the procedure prescribed under Sections 148 and 148A, absence of valid written approval under Section 151, denial of statements relied upon by the Revenue and opportunity for cross-examination, and an addition of Rs. 4,64,75,870 under Section 69 of the Income Tax Act.

During the hearing, the assessee also filed a petition under Rule 11 of the ITAT Rules, 1963, seeking admission of an additional ground concerning the jurisdiction of the Faceless AO.  The additional ground raised the question whether the Faceless AO of the NFAC had jurisdiction to complete the income-escaping assessment under Sections 147 read with Sections 144 and 144B before the notification under Section 151A dated 29 March 2022. The assessee argued that the assessment order had been passed before the notification governing faceless income-escaping assessment came into operation and, therefore, the assessment proceedings were without jurisdiction and liable to be quashed.

The Tribunal observed that the additional ground raised by the assessee was genuinely connected with the root of the assessment proceedings. Accordingly, the Tribunal admitted the additional ground under Rule 11 of the ITAT Rules, 1963.

However, the Tribunal noted that the issue had neither been raised before nor considered or adjudicated by the lower authorities. Therefore, instead of deciding the issue for the first time at the appellate stage, the Tribunal considered it appropriate to remit the matter to the CIT(A) for examination and fresh adjudication in accordance with law. Accordingly, the appeal was allowed for statistical purposes.