Document Identification number (DIN) and earlier computer generated numbers . Circular no. 19 of 2019 dated 14.08.2019 should be applicable to earlier notices , orders etc.

[DEV KUMAR KOTHARI]

Document Identification number (DIN) is very old concept under Income-tax Act, 1961

Concept of DIN was introduced long ago:

We may recall S. 282 B in the IT Act which was inserted vide Finance (No.2) Act, 2009, w.e.f. 1-10-2010, and faced some amendments and then it was omitted vide Finance Act, 2011 w.e.f 1.4.2011.

This provided for DIN for all documents to be issued by department and also to be filed by assessee ,otherwise the document  will be invalid.

Therefore, concept of electronically generated document number was conceptualized long ago and is being used for long time by mentioning numbers in particular style. Though earlier it was only known and described as notice number or document number and now it is popularly referred to as DIN.

Section 282B, though omitted is crucial in context of scope, utility and purpose of document number as was visualized and introduced in law. Therefore, the said section with details of amendment etc. is reproduced below with highlights added by author:

Income-tax Act, 1961

Allotment of Document Identification Number.

 282B. ⁴[***]  

******************

Notes:

1. This section inserted vide Finance (No.2) Act, 2009, w.e.f. 1-10-2010,

2. In sub-section (1), for the words "income-tax authority shall", the words, figures and letters "income-tax authority shall, on or after the 1st day of July, 2011," has been substituted, vide Finance Act, 2010 w.e.f 01.04.2010.

3. In sub-section (3), for the words "received by", the words, figures and letters "received, on or after the 1st day of July, 2011, by" has been substituted, vide Finance Act, 2010 w.e.f 01.04.2010.

4. Omitted vide Finance Act, 2011 w.e.f 1.4.2011, before it was read as,

"(1) Every ²[income-tax authority shall, on or after the 1st day of July, 2011,] allot a computer generated Document Identification Number in respect of every notice, order, letter or any correspondence issued by him to any other income-tax authority or assessee or any other person and such number shall be quoted thereon.

(2) Where the notice, order, letter or any correspondence, issued by any income-tax authority, does not bear a Document Identification Number referred to in sub-section (1), such notice, order, letter or any correspondence shall be treated as invalid and shall be deemed never to have been issued.

(3) Every document, letter or any correspondence, ³[received, on or after the 1st day of July, 2011, by] an income-tax authority or on behalf of such authority, shall be accepted only after allotting and quoting of a computer generated Document Identification Number.

(4) Where the document, letter or any correspondence received by any income-tax authority or on behalf of such authority does not bear the Document Identification Number referred to in sub-section (3), such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received.]"

At relevant times, there were news reports in various news papers and media about DIN

For example:

I-T dept introduces Document Identification Number - DIN for tax filing & correspondence

SECTIONS

I-T dept introduces Document Identification Number - DIN for tax filing & correspondence

SECTIONS

I-T dept introduces Document Identification Number - DIN for tax filing & correspondence

PTI Last Updated: Nov 29, 2010, 08:40 AM IST
 

NEW DELHI: Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the Income Tax department.

The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on "every" income tax-related communication, including returns to be filed next year for the financial year 2010-11.

According to the new guidelines brought out by the Central Board of Direct Taxes (CBDT), the DIN will be mandatory "in respect of every notice, order, letter or any correspondence" with the department, by the taxpayers.
 

"The DIN will be generated by the I-T department and will be useful, essentially, for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses," a senior Finance Ministry official said.
 

The 'Aykar Sampark Kendras' will hand out the DIN from this month, the official said.

Assesses will not be put to any trouble, as the numbers will be generated and allotted by the department itself.

I-T officials will also be allotted the numbers in order to streamline the process, the official said, adding, the number has to be produced thereon for every activity with the department.
 

Taxpayers and tax collectors are currently required to quote Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) among others when returns are filed with the department.
 

According to section 282B of the Income Tax Act that deals with DIN, if the document sent to the tax authority does not bear this unique computer-generated number then "such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received."
 

DIN is aimed at bringing more transparency in tax administration as the whole exercise involves a number of documents and proformas. Apart from regular filing of taxes, a taxpayer deals with the department for various other financial services, which DIN will help to ease, the official said.
Read more at:
https://economictimes.indiatimes.com/wealth/personal-finance-news/i-t-dept-introduces-document-identification-number-din-for-tax-filing-correspondence/articleshow/7003996.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Memory recall:

The numbering of documents by Income tax department is in practice for long time, particularly in case of e-filing and e-processing and ordering etc.  The number was called DIN and known as such. Right from beginning of concept it was clearly conveyed in the provision itself that any communication issued by IT department in nature of notice, order ,  letter must bear DIN to be valid and  legally forceful.

Circular of CBDT:

On the lines of provisions of S.282B  as reproduced and analyzed earlier, is the circular issued by CBDT.

 The same is reproduced below with highlights added:

Circular No. 19/2019  dated the 14^th of August, 2019   (F.NO. 225/95/2019-ITA.II)

Subject: Generation/Allotment/Quoting of Document Identification Number in Notice/Order/Summons/letter/correspondence issued by the Income-tax Department-reg.

• With the launch of various e-governance initiatives, Income-tax Department is moving toward total computerization of its work. This-has led to a significant improvement in delivery of services and has also brought greater transparency in the functioning of the tax-administration. Presently, almost all notices and orders are being generated electronically on the Income Tax Business Application (ITBA) platform. However, it has been brought to the notice of the Central Board of Direct Taxes (the Board) that there have been some instances in which the notice, order, summons, letter and any correspondence (hereinafter referred to as "communication") were found to have been issued manually, without maintaining a proper audit trail of such communication.

2.  In order to prevent such instances and to maintain proper audit trail of all communication, the Board in exercise of power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has decided that no communication shall be issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person, on or after the 1^st day of October, 2019 unless a computer-generated Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication.

3.  In exceptional circumstances such as, -

(i)  when there are technical difficulties in generating/allotting/quoting the DIN and issuance of communication electronically; or

(ii)  when communication regarding enquiry, verification etc. is required to be issued by an income-tax authority, who is outside the office, for discharging his official duties; or

(iii)  when due to delay in PAN migration, PAN is lying with non-jurisdictional Assessing Officer; or

(iv)  when PAN of assessee is not available and where a proceeding under the Act (other than verification under section 131 or section 133 of the Act) is sought to be initiated; or

(v)  When the functionality to issue communication is not available in the system,

the communication may be issued manually but only after recording reasons in writing in the file and with prior written approval of the Chief Commissioner / Director General of income-tax. In cases where manual communication is required to be issued due to delay in PAN migration, the proposal seeking approval for issuance of manual communication shall include the reason for delay in PAN migration. The communication issued under aforesaid circumstances shall state the fact that the communication is issued manually without a DIN and the date of obtaining of the written approval of the Chief Commissioner / Director General of Income-Tax for issue of manual communication in the following format-

“.. This communication issues manually without a DIN on account of reason/reasons given  in para 3(i)/3(ii)/3(iii)/3(iv)/3(v) of the CBDT Circular No ...dated…. (strike off those which are not applicable) and with the approval of the Chief Commissioner / Director General of Income Tax vide number .... dated ….”

4.  Any communication which is not in conformity with Para-2 and Para-3 above, shall be treated as invalid and shall be deemed to have never been issued.

5.  The communication issued manually in the three situations specified in para 3- (i), (ii) or (iii) above shall have to be regularised within 15 working days of its issuance, by -

i. uploading the manual communication on the System.

ii . compulsorily generating the DIN on the System; 

iii. communicating the DIN so generated to the assessee/any other person as per electronically generated pro-forma available on the System.

6.  An intimation of issuance of manual communication for the reasons mentioned in para 3(v) shall be sent to the Principal Director General of Income-tax (Systems) within seven days from the date of its issuance.

7.  Further, in all pending assessment proceedings, where notices were issued manually, prior to issuance of this Circular, the income-tax authorities shall identify such cases and shall upload the notices in these cases on the Systems by 31 October, 2019.

Un quote:

We find that the Circular is in conformity with the intended purpose of DIN which was visualized long ago in form of specific provision as reproduced earlier.

We also find that casual approach has been followed in documents numbering. There may be cases in which some document or notice are numbered and some are not so numbered.

Therefore   utmost care need to be applied to find out status about numbering of  notices and orders. If any of them is not so  numbered in computer generate manner and in case of exceptions regularization has not been completed within prescribed time and manner. Then the document including order, demand notice will be invalid.

For example, some cases are found I which initiation of a proceeding is with issue of a notice with  number  which is commuter generated and dated. However, subsequent notice or order was issued manually and there is no information and document on PORTAL to provide information about compliance  by allotment of  issue of DIN.

There may be cases in which notice like notice u.s. 143.2, 148 was issued in proper notice with computer generated number but assessment order and demand notice is not issued with such number.

The circular mentions about use of such numbers in most of cases but some exceptions are found. For which the Circular has been issued to take care in future.   Exceptions and remedial measures have also been stated.

The Circular mentions only about authority to issue such instructions vide S.119 of Income Tax Act, 1961. This  is perhaps , because at present there is no specific provision in the Act about DIN. The numbering seems  as per administrative policies.  

(The author hopes that anything has not been missed)

The circular must apply to old notices, orders etc.

The circular is clarification in nature and as per administrative policies. Therefore, it must be applied to old orders and notices etc. if they were not numbered by way of computer generated numbers.

Claim for invalid notice or order can be raised:

In some circumstances assesse can claim  that document   like  demand  notice or order  is invalid if it did not bear computerized number. Such claim can be made in appropriate proceedings like  in appeal.

For example ,  in case notice u.s. 148 was issued which was with  computer generate number. However, assessment order and demand notice were issued without such number, and subsequently also there is no allotment of computerized number as is required as per Circular.

Before

NATIONAL FACELESS APPEAL CENTRE (NFAC)  DELHI

Sub: additional ground of appeal in appeal No:CIT(A),     fixed for compliance vide DIN: ITBA/NFAC/F/APL_1/2023- 24/ ......  fixing date of compliance    .2023.

Sir,

                               Additional ground of appeal

I request to kindly admit the following ground as preliminary and additional ground of appeal:

           “ That the assessment order and demand notice may be considered as void and invalid in absence of computerized number on the same.”

Before discussion on grounds of appeal I request you to kindly consider as preliminary issue and contention raised for your consideration  vide above additional ground of appeal.  The fact relevant to this are as follows:

The notice dt.           .2018  u.s. 148 bears a computerized number as follows:

Notice no. ITBA/AST/S/148/2017-18/  xxxxx (1)

Therefore, initiation of proceeding was as per various e-governance initiatives taken by department. Accordingly all notices , letters, order, demand notice etc. issued subsequently must also bear such computerized number.

However, assessment order dt.   .18, and demand notice dt.    .2018 do not bear such number. 

I understand that such number is for providing definite identity to any order or notice issued by income tax  authority for establishing its identity and authenticity.

 Similar numbers are now called as DIN (document identification number) which is considered compulsory and in absence of such number the document will be void.

 Though at relevant time it was not called DIN for example in  notice u.s. 148  it is called Notice. in fact it is similar to DIN and has been designed and implemented for the purpose of e-governance just like as now known for DIN

As per policy under e-governance any  notice, order, summons, letter and any correspondence  or communication must  bear such number to maintain  proper audit trail of such communication.

Kindly examine whether in absence of computerised number on assessment order and demand notice they are valid or not. 

If it is found that the assessment order and demand notice served on assessee  are not valid due to lack of computerised number, then other grounds and contentions in this appeal  may be considered as infructuous not requiring adjudication.  This will save lot of time of your good self.

I am forwarding a copy of this petition for additional ground for information of Ld. AO and for his action thereon, if so required and desired.

Thanking you

Yours faithfully, assessee / appellant

The above is one example and in different circumstances suitable steps can be taken

Discussions to this article

[LALIT MUNOYAT]

 6th June 2022

Questions on the quashing of the CIT-A order for non-quoting of DIN as per Circular 19/2019.

1. AO passed an order u/s 143(3) making additions of about Rs. 1.65 Crore.

2. The Assessee filed appeal before CIT-A who disposed off the said appeal by restricting the additions to. Rs. 0.95 Crore and sustained the additions for Rs. 0.70 Crore.

3. Unfortunately the CIT-A order violated Circular 19/2019 on the issue of DIN and as such CIT-order was invalid and illegal ab initio.

4. The Assessee filed further appeal before ITAT raising the non-issue of DIN as the very 1st ground of appeal and requested for quashing of the CIT-A Order:

5. The assessee could not attend the 4 hearings provided by the ITAT. The assessee received first 2 notices for hearing and an adjournment was sought for the 2nd hearing notice. 3rd and 4th hearing could not be attended due to non-receipt of the notices due to change in address. This all happened within a span of period from 24th May 22(1st hearing) to 21-10-22 (Last hearing)

6. The CA of the assessee waited for further notice and when found that it was not coming the, the CA checked the Case Status on the Website and found that the case was disposed off on 21-10-22 ex-parte for non-prosecution and the 1st ground of Appeal about DIN was not at all considered by the ITAT while passing ex parte order, though the ITAT gave further relief of about Rs. 6.50 lakhs. At the disposal of the appeal by the ITAT, the net additions that remained to be deleted was Rs. 63.50 Lakhs. The assessee is filing MA for recalling of the Order and once recalled the CIT-A Order is surely going to be quashed in view of the stated legal position of 17 ITAT and 2 HC which have dealt with such cases and in all the cases, the CIT-A Order/ITAT order was quashed.

7. QUESTIONS

7.1 When the CIT A order would be quashed by the ITAT after recall and held illegal, invalid and non-est what will be the position of the Order of the ITO since this order had already merged with the CIT-A Order and legally there is no existence of any order of the ITO after the merger.?

7.2 Can the original order of the ITO demerge from the CIT-A order once the same is declared non-est for non issue of DIN? If so, would the relief given by the CIT-A and ITAT order vanish and the Original order of the ITO will once again become live for all purposes raising the additions to its original amount of Rs. 1.65 Crore? (In my personal view this is not possible)

7.3 There can’t be any more appeal against the re-lived ITO order before the CIT-A and thus I would be deprived of my constitutional right of 1st Appeal.

8. Matter is confusing us and I request the Ld. Readers and the Authors of the website to kindly clarify the matter of the legal position as obtaining from the above circumstances.

Thanks in Advance