2024 (2) TMI 628 - AT - Income Tax

Validity of assessment order without quoting DIN - HELD THAT - This issue of DIN has been squarely covered by the order of the Co-ordinate Bench of ITAT in the case of Nirmala Devi Vs. DCIT 2023 (11) TMI 1224 - ITAT DELHI who is the other individuals of the family covered u/s 153A wherein held if the assessment order does not follow the mandate of DIN the same has to be treated as invalid nonest in law as if it has never been issued. Board has made it very clear that in cases where communication is issued manually, it may be done only after obtaining necessary approval of the relevant authorities and communication so issued must indicate the exceptional circumstances provided in the Circular itself. It has been made very clear by the Board that any communication which is not in conformity with Para 2 and 3 of the Circular shall be treated as invalid and shall be deemed to have never been issued. Thus no hesitation to hold that the assessment order framed u/s. 143(3) r.w.s. 153C of the Act is null and void and nonest. Appeal of assessee allowed.

Summary

Issues Involved:
1. Validity of Assessment Order due to absence of Document Identification Number (DIN).

Summary:

1. Validity of Assessment Order due to absence of Document Identification Number (DIN):
The primary issue raised by the assessee in the appeal was the absence of the Document Identification Number (DIN) in the Assessment Order dated 29.09.2021. The assessee argued that this omission violated CBDT Circular No. 19/2019 dated 14.08.2019, rendering the order null and void. The Departmental Representative (DR) did not dispute the absence of the DIN in the Assessment Order.

The Tribunal referenced its earlier decision in the case of Nirmala Devi Vs. DCIT, where it was held that an assessment order without a DIN is invalid and nonest in law as per the CBDT Circular No. 19/2019. The Tribunal reiterated that the CBDT Circular mandates the inclusion of a DIN in all communications issued by the Income Tax Department, and any communication without a DIN is to be treated as invalid.

The Tribunal also cited the Hon'ble Delhi High Court's order dated 20.03.2023 in ITA No. 163/2023, which upheld the Tribunal's decision that an assessment order lacking a DIN is invalid and deemed to have never been issued. The High Court emphasized that the purpose of the 2019 Circular was to create an audit trail and ensure transparency, and therefore, any communication without a DIN has no standing in law.

In light of these precedents and the unchanged factual matrix, the Tribunal concluded that the Assessment Order for the A.Y. 2020-21 in the case of the assessee is treated as nonest and invalid due to the absence of a DIN.

Conclusion:
The appeal of the assessee was allowed, and the Assessment Order dated 29.09.2021 was declared null and void. The order was pronounced in the open court on 03/01/2024.