Facts of the Case

The assessee, Kalawati Enterprises Private Limited, Patna, filed an appeal against the order dated 30.06.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2013-14. The assessment in the case was completed under Section 147 read with Section 144B of the Income-tax Act by the Assessing Officer (NFAC), Delhi on 24.03.2022. The assessee challenged the validity of the assessment order on the ground that the National Faceless Assessment Centre did not have jurisdiction to pass the assessment order on the said date, as the notification giving effect to faceless reassessment under Section 151A came into force only on 29.03.2022.

Issues Involved

Whether an assessment order passed by the National Faceless Assessment Centre prior to 29.03.2022 is valid in law, whether the faceless reassessment scheme under Section 151A was applicable before the date of notification, and whether such an assessment order is liable to be quashed for want of jurisdiction.

Petitioner’s Arguments

The assessee contended that the assessment order dated 24.03.2022 was passed by the NFAC before the issuance of Notification No. 18/2022 dated 29.03.2022, which made the faceless reassessment scheme operational. It was submitted that prior to the said notification, the NFAC had no jurisdiction to conduct reassessment proceedings or pass assessment orders. Reliance was placed on the decision of the ITAT Kolkata Bench in Md. Mahimud SK as well as the ITAT Cuttack Bench decision in Nand Kumar Choudhury, wherein identical assessment orders passed prior to 29.03.2022 were held to be without jurisdiction and quashed.

Respondent’s Arguments

The Revenue supported the orders of the Assessing Officer and the CIT(A) and contended that the assessment was validly completed. It was argued that the assessee had cooperated during assessment proceedings and that the issue should be decided on merits.

Court Order / Findings

The ITAT Patna observed that the assessment order in the present case was passed on 24.03.2022, whereas the notification making the faceless reassessment scheme effective under Section 151A was issued only on 29.03.2022. Respectfully following the decisions of the coordinate benches of the Tribunal in Md. Mahimud SK and Nand Kumar Choudhury, the Tribunal held that the NFAC did not have jurisdiction to pass the assessment order prior to the effective date of the notification. The Tribunal held that the defect went to the root of jurisdiction and could not be cured. Accordingly, the assessment order passed by the NFAC was held to be invalid and liable to be quashed.

Important Clarification

The Tribunal clarified that jurisdiction of the National Faceless Assessment Centre to conduct reassessment proceedings flows only from the statutory notification issued under Section 151A. Any assessment order passed prior to the effective date of such notification is without authority of law and void ab initio, irrespective of participation by the assessee.

Final Outcome

The appeal filed by the assessee was allowed, and the assessment order dated 24.03.2022 passed under Section 147 read with Section 144B of the Income-tax Act by the National Faceless Assessment Centre was quashed as being without jurisdiction and invalid in law.

 

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