2023 (8) TMI 1403 - AT - Income Tax

Order passed u/s 154 does not bear DIN - HELD THAT - As decided in 2023 (4) TMI 579 - DELHI HIGH COURT Hon ble Delhi High Court assessment order without DIN can have no standing in law. Further an identical issue has been considered by the Hon ble Supreme Court in case of Pradeep Goyal vs. UOI 2022 (8) TMI 216 - SUPREME COURT Accordingly when the AO has not followed the procedure as provided in the circular no.19 of 2019 in para 2 then even if the present case falls in the exceptions under para 3(v) being no PAN case the order passed by the AO u/s 154 is invalid. The subsequent generation of DIN by the AO on 14th October 2019 would not change the illegality of the order when the procedure provided under para 2 of the circular is not followed by the AO. Hence following the earlier decision of this tribunal as well as the decision of the Hon ble Delhi High Court in case of CIT vs. Brandix Mauritius Holdings Ltd., 2023 (4) TMI 579 - DELHI HIGH COURT the impugned order passed by the AO u/s 154 of the Act is invalid and the same is quashed. Appeal filed by the assesse is allowed.

Summary

Issues Involved:

1. Validity of the rectification order passed under Section 154 of the Income Tax Act, 1961.
2. Compliance with CBDT Circular No. 19 of 2019 regarding Document Identification Number (DIN).
3. Request for the supply of the assessment order dated 24.12.2018.

Summary:

1. Validity of the Rectification Order Passed Under Section 154:

The appeal by the assessee challenges the order dated 22.11.2022 by the Commissioner of Income Tax (Appeals), which upheld the addition of Rs. 1.25 crore to the income of the assessee and the order passed by the Assessing Officer (AO) under Section 154 of the Income Tax Act for the Assessment Year 2011-12. The assessee, a senior citizen and farmer, contended that the rectification order passed on 10.10.2019 was invalid due to the absence of a Document Identification Number (DIN).

2. Compliance with CBDT Circular No. 19 of 2019:

The Tribunal noted that the rectification order dated 10.10.2019 did not bear a DIN, which was subsequently generated on 14.10.2019. According to CBDT Circular No. 19 of 2019, no communication shall be issued by any income tax authority unless a computer-generated DIN has been allotted and quoted in the body of such communication. The Tribunal cited multiple decisions, including those from the Hon'ble Delhi High Court and the Supreme Court, which held that any communication without a DIN is invalid and deemed never to have been issued. The Tribunal concluded that the subsequent generation of DIN did not rectify the illegality of the order.

3. Request for the Supply of the Assessment Order Dated 24.12.2018:

The assessee claimed that the assessment order dated 24.12.2018 was never served, and he became aware of it only upon receiving the rectification order. The Tribunal directed the AO to supply the assessment order dated 24.12.2018 to the assessee within one month from the receipt of the Tribunal's order.

Conclusion:

The Tribunal quashed the rectification order passed under Section 154 due to non-compliance with the DIN requirement as per CBDT Circular No. 19 of 2019. The appeal filed by the assessee was allowed, and the AO was directed to provide the assessment order dated 24.12.2018 to the assessee.