Navyug Technologies Private Limited Vs ITO (ITAT Delhi)
Assessment Signed Manually in E-Proceedings Violates CBDT Instruction No.1/2018 – Reassessment U/s 147/143(3) Quashed – ITAT Delhi
The assessee challenged reassessment framed u/s 147 r.w.s 143(3) by raising an additional legal ground before ITAT contending that the assessment order was invalid since it was manually signed despite the case being conducted through e-proceedings, contrary to CBDT Instruction No.1/2018. The Tribunal admitted the additional legal ground relying on the Supreme Court ruling in NTPC Ltd. vs. CIT, holding that a pure legal issue going to the root of the matter can be raised at any stage.
On merits, ITAT observed that CBDT instructions mandate digital signing of all communications and orders in electronic scrutiny proceedings. Since the AO issued the assessment order with manual signature, it violated prescribed procedure and rendered the assessment legally defective. Following coordinate bench rulings and settled legal principles that statutory procedures must be strictly followed, the Tribunal held that the defect was incurable and quashed the assessment itself. Consequently, other grounds became academic and were not adjudicated. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is emanating from the order of the Ld. National Faceless Appeal Centre (NFAC), Delhi in Appeal No. CIT(A), Delhi-6/10768/2019-20 dated 2.8.2024. Assessment 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.
