Income Tax Notice and Order Lacking Signature by Proper Officer cannot be Sustained: Telangana HC [Read Order]

The Telangana high court ruled that the income tax notice and order lacking the signature of a proper officer, physically or electronically cannot be sustained. The notice and order was set aside.

The assessee- counsel submitted that  the impugned notice dated 08.11.2023 and the impugned order dated 27.04.2024 were not physically or electronically signed by proper authority. In the absence of any signature, notice and the order cannot sustain judicial scrutiny.

The same issue was dealt with in the case of M/s. Sri Saturi Enterprises vs  The Assistant Commissioner of State Tax of this same high court. Both the assessee and the income tax department has agreed to dispose of the case in accordance with the decision of the previous decision.

In the case of M/s Sri Saturi Enterprises, the counsel for the assessee placed reliance on the judgment of SRK Enterprises v. Assistant Commissioner (ST)1; (ii) Ramani Suchit Malushte v. UOI & Ors2; (iii) Railsys Engineers Pvt. Ltd. V. Addl. Commr of CGST (Appeals-II)3., and another judgment, submitted that the singular point involved is no more res integra. Further submitted that since the order is not pregnant with the signature of the competent authority, the order cannot sustain judicial scrutiny.

The bench of Justice Justices Sujoy Paul and N. Tukaramji, considering the order of the above-mentioned case, set aside the impugned income tax notice and orders, granting the income tax department the liberty to proceed against the petitioner from appropriate stage and to the petitioner to take all plausible defences in accordance with law. 

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