TaxTMI 
TaxTMI 
2026 (5) TMI 1120
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....assessment order dated 18/12/2019 in question has not been signed digitally which is in violation of CBDT Instruction No. 1/2018 [F.No. 225/157/2017-ITA.II) dated 12.2.2018. Further contended that the Co-ordinate Bench of the Tribunal in the case of Navneet Technologies Pvt. Ltd. Vs. ITO in ITA No. 4579/Del/2024 vide order dated 16/02/20216, quashed the assessment order on the ground that the assessment order is not digitally signed. Thus, sought for allowing the present Appeal. 3. Per contra, the Ld. DR. though not disputed the fact that the assessment order is not signed digitally, however, submitted that the addition has been made by the A.O. as per law with an intention to collect the due tax from the Assessee, therefore, submitted t....
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....sions 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. 01/2018 dated 12.02.2018 has notified that all assessment proceedings in scrutiny cases are to be conducted electronically.....
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.... 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 stations, till 31-3-2018, the assessment proceedings in cases to be completed as per Central Action Plan target, may be conducted manually if ....
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....f 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 'EProceeding' facility, a particular proceeding may take place manually in following situation(s): i. where manual books of account or original documents have to be examined; ii. where Assessing Officer invokes provisions of section 131 of the Act or a n....
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....tructions 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 had not come back from the CPC for being digitally signed and issued to the assessee (grievance had b....
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....ed 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. DR, but he could not controvert the above fact situation. 6. After hearing the rival contentions and gone through the....