2024 (5) TMI 386 - AT - Income Tax

Validity of unsigned order - Final assessment order not signed by the AO - DR submitted that the additions made in the draft assessment order and the final assessment order are the same and as the draft assessment order has been duly signed by the AO and the additions made therein have been confirmed by DRP no prejudice is caused to the assessee if the final assessment order is not signed by the AO - HELD THAT - The Board has issued instructions from time-to-time laying down the procedures for signing of the notices and the assessment orders. Sub-section (2) of section 282A of the Act explains the connotation of expression authentication . Thus signing of document and authentication of document carry different meaning. Signing of document denotes committing to the document whereas authentication of document relates to genuineness of origin of document. If signing and authentication would mean the same then there was no need for the Legislature to lay down the requirement of signing the documents viz. notices orders etc. in sub-section (1) and explain the purpose of authentication in sub-section (2) of section 282A of the Act. If argument of the Revenue is accepted then the provisions of sub-section (1) of section 282A would become redundant. Revenue has tried to take shelter under section 292B of the Act. The said section cures the procedural defects or omissions. The section does not grant immunity from non-compliance of statutory provisions. Non-signing of an assessment order is not a procedural flaw that can be cured subsequently. The order is complete only when it is signed and released. The date on which the order is signed by the AO is the date of order. If the Revenue s contention is accepted and the AO is allowed to sign the assessment order now considering it to be procedural deficiency still the order would suffer from the defect of limitation and would be without jurisdiction. In the case of Vijay Corporation 2012 (4) TMI 353 - ITAT MUMBAI co-ordinate Bench in a case where the assessment order served on the assessee was not signed by the AO held that requirement of signature of the Assessing Officer is a legal requirement. The omission to sign the order of assessment cannot be cured by relying on the provisions of section 292B of the Act and held the order invalid. Ergo in facts of the case and documents on record we hold the unsigned impugned assessment order served on the assessee invalid and quash the same. Decided in favour of assessee.

Summary

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.