2023 (11) TMI 802 - AT - Income Tax

DRP directions communicated without mentioning DIN - whether a curable defect? - 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 - HELD THAT - This issue of quashing of the order owing to absence of quoting of mandatory DIN by the Officers in their orders stands adjudicated by the Co-ordinate Bench of ITAT in the case of Sh. Rajesh Chaudhary 2023 (11) TMI 737 - ITAT DELHI as held 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. In the absence of any material change in the factual matrix, legal proposition and in the circular no. 19 of the CBDT, we hereby hold that the Assessment Orders have to be declared as non-est and deemed to have never been issued.

Summary

Issues involved:
The issues involved in this judgment are the validity of final assessment orders passed for assessment years 2017-18 and 2018-19 due to the absence of Document Identification Number (DIN) in the orders.

Issue 1: Absence of DIN rendering assessment orders invalid
The assessee contended that the final assessment orders were invalid as the DRP directions lacked the mandatory DIN. The ITAT referred to a previous case where the absence of DIN was adjudicated. The Circular No.19 of 2019 by CBDT mandates that no communication shall be issued without a DIN after October 1, 2019. The assessment orders in question did not include a DIN, nor did they provide reasons for the absence or approval from the competent authority. Citing legal precedents, the ITAT declared the assessment orders as non-est and deemed to have never been issued, quashing them.

Issue 2: Impact on Revenue's appeal
As a result of quashing the assessment orders, the issues raised in the Revenue's appeal became academic, and there was no need to adjudicate them. Consequently, the Revenue's appeals were dismissed, and the assessee's cross-objections were allowed. The impugned orders of the first appellate authority were set aside, and the appeals of the assessee were allowed.

Separate Judgment:
A separate judgment was delivered on 17/11/2023, where it was reiterated that the Assessment Orders had to be declared as non-est and deemed to have never been issued due to the absence of DIN, maintaining consistency with the legal proposition and Circular No. 19 of the CBDT.