M/S. PHILIPS ELECTRONICS NEDERLAND B.V.,KOLKATA vs. A.C.I.T.(INTERNATIONAL TAXATION), CIRCLE - 2(1), KOLKATA, KOLKATA

ITA 134/KOL/2023Status: DisposedITAT Kolkata30 April 2025AY 2020-2021Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI SONJOY SARMA (Judicial Member)7 pages
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What did the Tribunal hold?

The Tribunal held that the final assessment order passed by the Assessing Officer, giving effect to the DRP's directions, was invalid and a nullity because it lacked the mandatory signature of the concerned Assessing Officer. Citing prior judgments, the Tribunal reiterated that signing is a legal requirement and not a curable procedural defect, thus quashing the unsigned order.

What were the facts?

The assessee filed its Return of Income, which was selected for scrutiny. The Assessing Officer (AO) determined taxable income by treating certain services as Royalty/Fees for Technical Services, finalizing the assessment under Section 144C(1). The assessee objected to the Dispute Resolution Panel (DRP), which upheld the AO's action, leading to a final assessment and demand notice. The assessee appealed to the Tribunal, raising additional grounds concerning the validity of the DRP directions and the final assessment order itself.

What were the issues?

1. Whether the directions issued by the Dispute Resolution Panel were valid in light of CBDT Circular No. 19/2019. 2. Whether the final assessment order, lacking the signature of the Assessing Officer, was valid and maintainable.

Which sections of the Income-tax Act were involved?

Section 144C(13),Section 143(3),Section 143(2),Section 142(1),Section 90(2),Section 156,Section 144C(1),Section 144C(2),Section 282(2),Section 282A,Section 292B

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Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR & SHRI SONJOY SARMA

Hearing: 06/02/2025Pronounced: 30/04/2025

Per Rajesh Kumar, AM: This is an appeal filed by the assessee against the order dated 31.12.2022, passed by the ACIT, Circle-2(1), IT, Kolkata giving effect to the direction given by the Dispute Resolution Panel-2, New Delhi(in short the ‘DRP’), dated 04.11.2022, thereby finalizing the assessment order in accordance with the provisions of Section 144C(13) r.w.s. 143(3) of the Act.

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