2023 (12) TMI 874 - AT - Income Tax

Validity of assessment order passed u/s. 143(3) with no quote/state any Document Identification Number (DIN) as per mandate of CBDT Circular 19/2019 dated 14.08.2019 - Subsequent generation of DIN - HELD THAT - As all the communication to the assessee should have DIN generated from ITBA to maintain proper audit trail of all the communications. In para 3 of this circular, the it had provided that in exceptional circumstances, wherein communication is to be issued manually, the reasons have to be recorded in the file and prior written approval of the CCIT/DGIT may be obtained in such cases. As per para 5, such communication shall have to be regularized within 15 working days by uploading the manual communication on system, compulsory generating the DIN on system and communicating to the assessee. Ostensibly, the assessment order in question does not comply with the requirements of Para-3 of the Circular (supra) and thus, we find no reason to uphold the decision of the CIT(A) on this aspect. We may note here that this facet of the controversy has been specifically dealt with in the case of Ashok Commercial Enterprise 2023 (9) TMI 335 - BOMBAY HIGH COURT wherein it has been held that the subsequent generation of DIN can only regularize the failure to generate the DIN, but yet the requirements of Paragraph-3 remaining uncomplied, would result in the communication being treated as invalid and never to have been issued. The aforesaid judgment completely dispels the stand of the CIT(A) in the present case. Therefore, we deem it fit and proper to treat the assessment order dated 31.12.2019 as invalid and is deemed to have never been issued and is accordingly set-aside. We hold so.

Summary

Issues Involved:
1. Validity of the assessment order dated 31.12.2019 under Section 143(3) of the Income Tax Act, 1961.
2. Compliance with CBDT Circular No. 19/2019 dated 14.08.2019 regarding Document Identification Number (DIN).

Summary:

1. Validity of the Assessment Order:
The assessee filed an appeal against the assessment order dated 31.12.2019, which was completed at a total income of Rs. 14,78,43,610/-, including additions under Section 69A of the Income Tax Act, 1961. The CIT(A) partly allowed the appeal. The assessee further appealed, challenging the validity of the assessment order due to non-compliance with CBDT Circular No. 19/2019.

2. Compliance with CBDT Circular No. 19/2019:
The primary issue raised by the assessee was the absence of a Document Identification Number (DIN) in the assessment order, as mandated by CBDT Circular No. 19/2019. The Circular requires all communications, including orders, to bear a DIN, except in exceptional circumstances with prior approval and proper documentation. The Tribunal noted that the assessment order did not quote any DIN, nor did it include the required statement about manual issuance with the approval of the Chief Commissioner.

Tribunal's Findings:
The Tribunal referenced the case of Smt. Sharda Devi Bajaj & Anr., where similar issues were considered, and it was held that the absence of a DIN rendered the communication invalid. The Tribunal emphasized that the CBDT Circular's requirements were clear, and any communication not conforming to these requirements would be deemed invalid and never issued.

CIT(A)'s Stand:
The CIT(A) argued that the assessment order was issued manually with the approval of the CCIT(C) Delhi and that the DIN was generated within 15 working days. However, the Tribunal found this explanation insufficient, as the assessment order did not comply with the specific format and requirements outlined in the Circular.

Conclusion:
The Tribunal concluded that the assessment order dated 31.12.2019 was invalid due to non-compliance with the CBDT Circular No. 19/2019. Consequently, the appeal of the assessee was allowed, and the assessment order was set aside. The appeal of the Revenue was dismissed as infructuous.

Result:
- Assessee's appeal allowed.
- Revenue's appeal dismissed.