Baban Tukaram Khade Vs ITO (ITAT Pune)
In the case of Baban Tukaram Khade Vs ITO, the ITAT Pune invalidated an order issued by the National Faceless Appeal Centre (NFAC) due to the lack of a valid digital or physical signature. The unsigned order, dated January 12, 2024, was passed under Section 250 of the Income Tax Act, 1961, concerning the assessment year 2017-18. The assessee challenged the validity of the order, citing that without a signature, the order had no legal effect. The tribunal agreed, referring to Section 282A of the Income Tax Act and Rule 127A of the Income Tax Rules, which mandate that notices or orders must be duly signed to be legally enforceable. Citing judicial precedent, the ITAT noted that unsigned orders fail to create any legal liability or rights for either party. Consequently, the tribunal set aside the NFAC’s order and remanded the case for re-adjudication, directing the NFAC to issue a fresh order after providing the assessee with at least three hearing opportunities. The case was remanded for statistical purposes, emphasizing the need for compliance with proper procedural requirements.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal of the assessee challenges the DIN & Order No. ITBA/NFAC/S/250/2023-24/1059661545(1) dt. 12/01/2024 passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ hereinafter] by the National Faceless Appeal Centre [‘NFAC’ hereinafter] which in turn arisen out of order of assessment passed u/s 143(3) of the Act by the Income Tax Officer, Ward-1(3), Nashik [‘AO’ hereinafter] for assessment year 2017-18 [‘AY’ hereinafter];
