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2023 (11) TMI 388 - AT - Income TaxValidity of assessment order with no DIN mentioned - Revenue submitted that DIN was separately generated and it was informed to the assessee by a separate letter - HELD THAT - CBDT has specifically stated that any communication without DIN shall be deemed to have never been issued. It means communication without DIN is void ab initio. The assessment order is treated as communication in Circular No.19/2019. In this case, the assessment order is dated 25.11.2019. The effective date of the Circular No.19/2019 was 1st October, 2019. Thus, the assessment order was issued after the 1st October, 2019. It is an admitted fact that there is no DIN mentioned in the order. DR submitted copy of a letter that DIN was subsequently generated on 28.11.2019 and communicated to the assessee. We asked ld.DR whether any written approval of Chief Commissioner of Income Tax was obtained for such letter as, as per Circular No.19/2019 any communication which is manually issued without DIN shall be issued with prior written approval of Chief Commissioner of Income Tax. However, no such approval was produced before us. As in the case of Ashok Commercial Enterprises 2023 (9) TMI 335 - BOMBAY HIGH COURT has held that assessment order without DIN shall be treated as invalid and deemed never to have been issued. Thus assessment order is without DIN, it shall be treated as invalid and deemed never to have been issued. Decided in favour of assessee.
Issues:
The appeal filed against the order of the Commissioner of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961 for A.Y.2012-13. The grounds of appeal include passing an ex-parte order without adjudicating on merit, adoption of valuation under section 50C without referring to the DVO, treating Gross Receipts as income under Capital Gain, and issuing the order without generating a Document Identification Number (DIN). Grounds of Appeal: 1. The Assessing Officer erred in passing an ex-parte order and not adjudicating on merit, violating the principle of natural justice. Request for a hearing before lower authorities. 2. The Assessing Officer adopted valuation under section 50C without referring to the DVO, violating provisions, and treated Gross Receipts as income under Capital Gain without considering the property's nature as agricultural land under Mahar Vatan, where no transfer occurred. 3. Additional grounds raised include the order issued without a DIN, taxing entire gross receipts as capital gain without considering the ancestral nature of the land, and taxing the entire amount without completion of the transaction, requesting deduction under section 54F. Findings & Analysis: The assessment order lacked a Document Identification Number (DIN), deemed invalid as per CBDT Circular No.19/2019, which requires a DIN for communication. The absence of DIN renders the communication void ab initio. The Hon'ble Bombay High Court decision in Ashok Commercial Enterprises Vs. ACIT supports that an assessment order without DIN is invalid. As the order in this case lacks a DIN, it is considered invalid, and the additional ground regarding the absence of DIN is allowed. The land received by the assessee from ancestors under Mahar Vatan was acquired free of cost, resulting in a Nil cost of acquisition as per relevant Supreme Court decisions. Therefore, no capital gain arises. Given the favorable legal ground decision, other grounds raised become academic, and there is no need for further adjudication. In conclusion, the appeal of the assessee is allowed based on the invalidity of the assessment order without a DIN and the Nil cost of acquisition for the inherited land. The order was pronounced in the open court on 12th October 2023.
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