TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1209
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....r (AO). 4. Shri Ajit Jain, appearing on behalf of the assessee submits that a perusal of the impugned assessment order would show that the same has been signed manually by the AO, whereas, the assessment has been made under 'E-Proceedings'. Placing reliance on CBDT Instruction No.01/2018 dated 12.02.2018, he submitted that all assessments made through 'E-Proceedings' facility are mandatorily required to be signed digitally by the Assessing Officer. Since, in the instant case assessment order has been signed manually by the Assessing Officer, the same is bad in law. The ld. Counsel prayed for quashing the assessment order on account of defect in signing of the assessment order manually. 5. On merits of the addition, the ld. Counsel for the assessee submits that the AO/Dispute Resolution Panel (DRP) have erred in treating software license fees and services amounting to Rs. 32,52,03,349/- as 'Fee for Technical Services' (FTS). Narrating facts of the case, the ld. Counsel submits that the assessee company was incorporated under the laws of Singapore and is a tax resident of Singapore. The assessee does not have any Permanent Establishment (PE) in India within the meaning of Artic....
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....software cannot be treated as FTS as per DTAA. He finally submits that the case of the assessee is squarely covered by the decision of Hon'ble Supreme of Court of India in the case of Engineering Analysis Centre of Excellence P. Ltd. vs CIT, 432 ITR 471. 6. Per contra, Ms. Ekta Jain representing the department vehemently defended validity of the impugned assessment order. The ld. DR placed on record factual report from the AO dated 25.04.2025 explaining the reasons for signing the assessment order manually. The ld. DR further referred to the decision of Cochin Bench of the Tribunal in the case of Mytheenkunju Muhammed Kunju Kandathil Jewellers vs. DCIT, 160 taxamann.com 630, to contend that where the Department Authorities were prevented from affixing digital signatures, manually signed assessment order does not make the assessment order invalid. On merits of the addition in holding license fee as FTS, the ld. DR reiterated findings of the AO and the DRP. 7. We have heard the submissions made by rival sides and have examined the orders of authorities below. We have also considered the decisions on which respective sides have placed reliance in support of their arguments. Befo....
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....and complete only ten percent scrutiny cases (which are getting barred by limitation on 31-12-2018) having the potential to effect recovery during the current year itself. The list of such stations shall be specified by the Pr. DGIT(Systems). Accordingly, at these stations, till 31-3-2018, the assessment proceedings in cases to be completed as per Central Action Plan target, may be conducted manually if e-assessment is not possible. It is reiterated that at other stations covered under para 2 above, subject to exceptions mentioned therein, the assessments would be conducted electronically only. 4. Some of the important procedural aspects while conducting assessment proceedings through 'E-Proceeding' are as under: 4.1 Enquiry before assessment in electronic mode : For enquiries before assessment in terms of section 142(1)(ii) of the Act, notice shall be issued electronically and delivered upon the assessee in his 'E-Filing' account. While filing the response electronically in compliance with notice under section 142(1)(ii) of the Act, the concerned assessee shall verify it in the manner prescribed under rule 14 of Income-tax Rules, 1962. 4.....
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....e Assessing Officer. No exception has been provided in the said instructions for signing the assessment orders manually. During the course of hearing, the ld. DR sought time to furnish copy of the exceptions, if any. The time sought by the DR was allowed. However, on the next date of hearing no such instructions were furnished and the ld. DR expressed her inability to lay hands on any such instructions carving out exceptions. In the absence of any exceptions, all assessment orders in 'E-Proceedings' have to be necessary signed digitally. The instructions dated 12.02.2018 issued by the Board would apply to all assessments made electronically. The ld. DR has placed on record the reasons given by the AO for signing the order manually. The relevant excerpts from the same are reproduced herein under: "In this regard, it is submitted that the date of limitation for passing the assessment order in this case was 31.01.2025 pursuant to the directions of the Hon'ble DRP. The assessment order for AY 2022-23 was passed and sent to CP for final accounting. However, CPC had not closed the accounting of the same and the assessment order along with computation sheet and demand notice ....