2024 (1) TMI 544 - AT - Income Tax

Validity of CIT s impugned revision order quoting no DIN number - as CIT s impugned order duly stood allotted the corresponding DIN number - HELD THAT - CBDT s Circular No.19 of 2019 dated 14.08.2019 issued under section 119 of the Act has made it clear that such a failure renders the same as void. Not a curable defect u/s 292B. As decided in Ashok Commercial Enterprises Vs. ACIT 2023 (9) TMI 335 - BOMBAY HIGH COURT order issued without a DIN does not bear the required format set out in paragraph 3 of the Circular and, therefore, the assessment orders without quoting DIN ought to be treated as invalid and deemed never to have been issued - The consequences of contravention of the Circular set out above, therefore, ought to be given full effect to. The object of the said Circular is clear and laudatory and intended to ensure that proper trail of all assessment and other orders are maintained and further that any deviation therefrom can only be undertaken after prior written approval of the higher authorities under the Act. Delay of 581 days in filing of the instant appeal against PCIT s revision order is condoned since falling under Covid-2019 pandemic outbreak period between 15.03.2020 to 28.02.2022 as per hon'ble apex court s directions in Cognizance for Extension of Limitation, In re 2021 (11) TMI 387 - SC ORDER read with judgment in Cognizance for Extension of Limitation, In re 2021 (3) TMI 497 - SC ORDER and 2020 (5) TMI 418 - SC ORDER excluding the covid-19 pandemic outbreak period from for all intents and purposes under the limitation law.

Summary

Issues Involved:
The legal question raised is regarding the failure to include a DIN number in the revision order, as required by Circular No.19 of 2019. The issue is whether the absence of a DIN renders the order void.

Legal Question:
The appellant contested the absence of a DIN number in the revision order by the Pr.CIT, citing Circular No.19 of 2019. The question was whether this absence rendered the order void, as per the circular's stipulations.

Key Details:
- The Circular mandated that no communication should be issued without a DIN after 1st October 2019.
- Exceptions were outlined for specific circumstances where manual communication could be issued, subject to recording reasons and obtaining prior approval.
- Any communication not conforming to the Circular's requirements would be deemed invalid and treated as never issued.
- The Circular emphasized the importance of maintaining an audit trail for all communications related to assessments, appeals, and orders.

Judgment:
The Tribunal referred to a recent decision by the jurisdictional high court in favor of the assessee, citing the Circular's binding nature on the revenue. The Tribunal quashed the Pr.CIT's order due to non-compliance with the Circular's DIN requirement, deeming it invalid and never issued.

Additional Points:
- The Tribunal allowed the appeal, considering the delay in filing due to the Covid-19 pandemic period.
- All other arguments on merits were considered academic, given the primary issue of non-compliance with the Circular's DIN requirement.

Conclusion:
The Tribunal upheld the importance of adhering to Circular No.19 of 2019 regarding the inclusion of a DIN number in communications, ruling the revision order void for not meeting this requirement. The appeal was allowed, and the order was pronounced on 31st October, 2023.