TaxTMI 
TaxTMI 
2026 (4) TMI 1246
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....ent was framed by the ITO, Ward 18(2), New Delhi u/s. 143(3)/147 of the Act on 19.2.2019 relevant to assessment year 2012-13. 2. Assessee's AR filed Application dated 4.2.2026 which has been placed on record, requesting for admission of following additional legal ground in the instant matter which is purely legal and goes to the root of the matter and needs to be admitted, on the anvil of the decision of the Hon'ble Apex Court in the case of National Thermal Power Co. Ltd. vs. CIT reported in 229 ITR 383 (SC). "Ground No. 7 : That, the assessment order passed under section 147/143(3) of the Income Tax Act, 1961 dated 19.12.2019 is illegal, bad in law and without prejudice as the same is passed in violation of CBDT Instr....
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....)(2), Delhi in ITA NO. 1601/Del/2025 (AY 2022-23) wherein, it has been held as under:- "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. Before proceeding to decide merits of the addition, the legal issue raised by the assessee in ground of appeal no.3 challenging validity of the Final Assessment Order in signing the order manually is taken up first for adjudication. A perusal of the impugned order reveals that the assessment order has been signed manually by the Assessing Officer. The assessment has been made under 'E-Proceedings'. The Board vide Notification No.....
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....s electronically through the 'E-Proceeding' facility, such cases, for the time-being, may be kept on hold. 3. Further, considering the situation that some of the stations have limited bandwidth, being VSAT stations and stations with limited capacity where bandwidth is in the process of being upgraded, it has been decided that till 31-3-2018, such stations, in accordance with target stipulated in Central Action Plan for financial year 2017-18, may undertake 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 station....
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....ugh 'E Proceeding' shall be automatically closed seven days before the time barring date. In other situations, upon completion of proceedings, before passing the final order, concerned Assessing Officer, on his volition, shall close the e-submission facility after mentioning in electronic order sheet that 'hearing has been concluded'. However, if required, in exceptional circumstances, the concerned Assessing Officer may enable further filing of submissions electronically under intimation to the Range Head in ITBA. 4.5 In assessment proceedings being carried out through the 'E-Proceeding' facility, a particular proceeding may take place manually in following situation(s): i. where manual books of ac....
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....t 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 co....
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....n the Department. The AO is thus mandatorily required to sign the assessment order digitally where the scrutiny assessments are conducted electronically. Since, in the instant case the assessment has been made under 'E'-Proceedings and assessment order has been signed manually, the same suffers from incurable defect, if, the assessment order has been served on the assessee. The reliance placed by the Revenue on the decision in the case of Mytheenkunju Muhammed Kunju Kandathil Jewellers vs. DCIT (supra) does not support the cause of Revenue as the same was passed in peculiar set of facts and hence, is distinguishable. Thus, the assessment order is liable to be quashed on this ground alone." 5. The aforesaid facts were confronted to Ld. Sr....