Jurisdictional defect in faceless assessment order: ITAT quashes order passed before the notification became effective.

The ITAT held that an assessment order passed under sections 147 and 143(3) was without jurisdiction where the National Faceless Assessment Centre issued the order on 28.03.2022, before the faceless assessment notification became effective on 29.03.2022. The Tribunal treated the notification's effective date as ative of the authority's power to act and found that the order could not be sustained when made before that date. It further held that the assessee's later participation did not cure the jurisdictional defect. The assessment order was therefore quashed.

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Issues: Whether the assessment order dated 28.03.2022, passed by the National Faceless Assessment Centre before the faceless assessment notification became effective on 29.03.2022, was without jurisdiction and liable to be quashed.

Analysis: The assessment was completed under sections 147 and 143(3) of the Income-tax Act, 1961. The Tribunal noted that the notification making the National Faceless Assessment Centre operative came into effect only on 29.03.2022, whereas the impugned assessment order was dated 28.03.2022. On that basis, the Tribunal held that the faceless authority had no jurisdiction to pass the order on the earlier date, and the subsequent participation of the assessee did not cure the jurisdictional defect.

Conclusion: The assessment order was held to be without jurisdiction and was quashed, in favour of the assessee.

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