2023 (11) TMI 737 - AT - Income Tax

Assessment orders communicated without mentioning DIN - HELD THAT - It mandates that on or after 1st day of October, 2019, no communication will be issued without a computer generated DIN, which has to be quoted in the body of the communication In the facts of the present appeal, admittedly, though, the assessment orders have been issued without mentioning the DIN, however, in the body of the assessment orders, the AO has neither provided reasons for issuing the assessment orders without DIN, nor he has mentioned the number and date of approval of the competent authority. Paragraph 4 of the extant circular states that any communication, which is not in conformity with paragraphs 2 and 3 of the circular shall be treated as invalid and shall be deemed to have never been issued. Thus, keeping in view the clear language of the aforesaid Circular, the assessment orders have to be declared as non-est and deemed to have never been issued. While coming to such conclusion, we find support from various judicial precedents cited before us by learned counsel for the assessee, including the decision of Brandix Mauritius Holdings Ltd 2023 (4) TMI 579 - DELHI HIGH COURT .

Summary

Issues Involved:
The judgment deals with the validity of assessment orders due to the absence of Document Identification Number (DIN) as mandated by CBDT Circular No.19/2019 and the legality of assessment framed under section 153A without incriminating material.

Issue 1: Validity of Assessment Orders without DIN:
The assessee contended that the assessment orders were invalid as they were issued without mentioning the DIN, citing CBDT Circular No.19/2019. The Circular mandated that no communication should be issued without a DIN after October 1, 2019. The Assessing Officer's report acknowledged that DINs were generated but manual orders were uploaded due to ITBA Portal limitations. The Tribunal noted that the Circular had statutory effect and any communication not conforming to it would be deemed invalid. As the assessment orders lacked DIN and reasons for the absence, they were declared non-est and set aside based on precedents and the Circular's provisions.

Issue 2: Legality of Assessment under section 153A:
The second issue raised pertained to the legality of the assessment framed under section 153A without any incriminating material found during the search. The Tribunal, however, did not delve into this issue as the assessment orders were quashed due to the absence of DIN, rendering the issues in Revenue's appeal on merits academic. Consequently, the Revenue's appeals were dismissed, and the assessee's cross-objections were allowed, leading to the setting aside of the orders of the first appellant authority.

Separate Judgment:
No separate judgment was delivered by the judges in this case.