2026 (2) TMI 250 - AT - Income Tax

Jurisdiction of NFAC in faceless assessment where order predates scheme effective date - appeal allowed and assessment set aside

NFAC lacked jurisdiction to issue an assessment order dated 24.03.2022 because the faceless assessment scheme became effective only on 29.03.2022; ... Jurisdiction of NFAC/National Faceless Assessment Centre - Effective date of faceless assessment scheme - HELD THAT:- Assessment order is dated 24.03.2022 and the notification for NFAC came into effect w.e.f. 29.03.2022. Therefore, respectfully following the decision of Nand Kumar Choudhury [2025 (9) TMI 1744 - ITAT CUTTACK] it is held that the NFAC did not have jurisdiction to pass the assessment order. Assessee appeal allowed. Issues: Whether the National Faceless Assessment Centre (NFAC) had jurisdiction to pass the assessment order dated 24.03.2022 when the notification making the faceless assessment scheme effective came into force on 29.03.2022.Analysis: The appeal concerned an assessment framed under Section 147 read with Section 144B of the Income-tax Act, 1961 by NFAC dated 24.03.2022. Section 151A and the NFAC scheme were made effective by a CBDT notification dated 29.03.2022. Coordinate-bench decisions holding that the NFAC lacked jurisdiction to issue notices or frame assessments prior to the notification's effective date were followed. Applying the statutory framework and the cited coordinate-bench precedents, the assessment order issued by NFAC before the notification came into effect is without jurisdiction and cannot be sustained.Conclusion: The assessment order dated 24.03.2022 passed by the NFAC is quashed. Decision in favour of the assessee; appeal allowed.