Unsigned final assessment order invalid despite signed draft order with identical additions under section 292B

The ITAT Mumbai held that an unsigned final assessment order is invalid and cannot be cured under section 292B of the Income Tax Act. The Revenue argued that since the draft assessment order was signed and confirmed by DRP with identical additions, no prejudice was caused. The Tribunal distinguished between "signing" and "authentication" under section 282A, ruling that signing demonstrates commitment to the document and is a statutory requirement, not merely a procedural defect. Following precedent in Vijay Corporation, the Tribunal quashed the unsigned assessment order in favor of the assessee.

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Issues Involved:
1. Validity of the assessment order due to it being unsigned.
2. Procedural compliance and statutory requirements for signing assessment orders.

Summary:

Issue 1: Validity of the Assessment Order Due to It Being Unsigned

The assessee contested the validity of the assessment order dated February 3, 2021, for the assessment year 2015-16, on the grounds that it was unsigned. The assessment order was received via email on February 19, 2021, and was not digitally signed. The assessee referred to Notification No. 2 of 2016, which mandates that assessment orders sent through email must be signed by the Assessing Officer. The counsel for the assessee argued that the unsigned order is invalid as per section 282A of the Income-tax Act, 1961, which requires all notices or documents issued by any Income-tax authority to be signed.

Issue 2: Procedural Compliance and Statutory Requirements for Signing Assessment Orders

The Department defended the assessment order, asserting that it was manually signed before being uploaded to the Income-tax business application portal. They argued that the unsigned order served on the assessee was a rectifiable error under sections 292B and 292BB of the Act. However, the Tribunal found that the assessment order available on the portal was neither manually nor digitally signed, thus invalidating the order. The Tribunal emphasized that signing an assessment order is a mandatory requirement, not a mere procedural formality. They referenced several instructions and notifications that stress the importance of signing assessment orders digitally or manually.

The Tribunal concluded that the unsigned assessment order served on the assessee is invalid and quashed the same. Consequently, other grounds raised in the appeal became academic and were not deliberated upon.

Conclusion:

The appeal of the assessee was allowed, and the unsigned assessment order was quashed. The judgment underscores the mandatory requirement for assessment orders to be signed, as per statutory provisions and procedural guidelines.

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