Karnataka High Court quashed TPOs unsigned order barred by limitation and consequent draft order
In the recent ruling of Hon’ble Karnataka High Court (HC) in the case of Toyota Tausho India Private Limited1 allows writ petition, quashes TPO’s order and the consequent draft assessment order as barred by limitation for AY 2018-19.
Assessee contended that the last date to pass order by TPO was 31.07.2021, however, Assessee received an e-mail on 02.08.2021 enclosing a copy of TPO order, which was both digitally and physically unsigned and also not available on the ITBA portal; Assessee further submitted that subsequently, it received one more email on 13.08.2021 purporting to enclose a copy of physically / manually signed TPO Assessee contended that the last date to pass order by TPO was 31.07.2021, however, Assessee received an e-mail on 02.08.2021 enclosing a copy of TPO order, which was both digitally and physically unsigned and also not available on the ITBA portal; Assessee further submitted that subsequently, it received one more email on 13.08.2021 purporting to enclose a copy of physically / manually signed TPO
order dated 31.07.2021, however, on 16.08.2021, the unsigned TPO order was uploaded on ITBA portal after expiry of time limit and without even being authenticated by the TPO’s digital signature.
In this context, Hon’ble HC stated that it was incumbent upon the TPO order to be digitally signed in terms of the CBDT Circular dated 12.02.2018 r/w Section 282A of the I.T.Act. Under these circumstances, it is clear that the TPO order having not been signed digitally before purporting to be passed and uploaded on 31.07.2021 is clearly illegal and non-est and the same deserves to be quashed.
Accordingly allows the petition and quashes TPO’s order and the consequent draft assessment order dated 29.09.2021.
For details, please refer judgement of Karnataka HC in case of Toyota Tausho India Private Limited [TS-251-HC-2024(KAR)-TP] https://www.dpncindia.com/wp-content/uploads/2024/07/TS-251-HC-2024KAR-TP-TOYOTA-TAUSHO-INDIA-PRIVATE-LIMITED.pdf
DISCLAIMER: – The summary information herein is based on Karnataka HC ruling in case of Toyota Tausho India Private Limited reported on Taxsutra.com on 20.06.2024. While the information is believed to be accurate, we make no representations or warranties, express or implied, as to the accuracy or completeness of it. Readers should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, advice or solicitation. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
PDF version is attached: Karnataka HC-Unsigned TPO order quashed
