I'm having trouble with the proof of the following remark from page 59 of Tu's book on Manifolds. The part I'm worried about is where he gets that $\phi\circ \psi^{-1}$ is $C^\infty$. Is he allowed to make that assumption? I thought we could only say this if the two charts were $C^\infty$-compatible.
Other relevant definitions from his book:


A smooth manifold is a $C^{\infty}$ manifold by definition and the transition functions of a $C^{\infty}$ manifold are supposed to be $C^{\infty}$ by definition.