2023 (4) TMI 941 - AT - Income Tax

Rectification of mistake u/s 254 - Validity of Revision order u/s 263 without mentioning DIN - manual order upload functionality, a DIN is generated and such manual order is communicated to the concerned assessee automatically through registered email along with a DIN intimation letter - Non satisfaction of compliance requirement of the CBDT circular - order under section 263 is passed manually and its body does not contain DIN nor any notation in the prescribed format that it is issued manually without quoting DIN by obtaining prior approval of Chief Commissioner/Director General - HELD THAT - On a specific query by the Bench to the ld. Senior DR to point out how a DIN intimation letter along with the manual order as explained by ld. CIT(Exemption) in his reply fulfils the categorical requirement mandated by CBDT circular in its para 2 that the body of the communication (order u/s 263 in the present case) must contain 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 prescribed format, nothing was placed to substantiate the same. Revenue has sought to rectify the order by submitting in its miscellaneous application that the DIN Number has been generated on 3103/2021 while passing the order . We understand that powers u/s 254(2) are limited only to rectify/correct any mistake apparent from the records. We do not find any mistake apparent from record in the order passed by the Bench, more particularly when nothing could be brought on record by the Revenue on specific queries made by the bench in reference to compliance requirements mandated by the CBDT circular no. 19/2019 dated 14.08.2019. Accordingly, miscellaneous application by the Revenue is dismissed.

Summary

Issues:
The judgment involves a miscellaneous application filed by the Revenue challenging an order passed under section 263 of the Income-tax Act, 1961 for AY 2016-17, specifically focusing on the absence of DIN in the revisionary order and compliance with CBDT Circular No. 19/2019.

Issue 1: Absence of DIN in the revisionary order
The Revenue sought rectification of the ITAT order, arguing that the order favored the assessee due to the absence of DIN in the revisionary order passed by the CIT(E) Kolkata. The CIT(E) clarified that the order under section 263 was passed manually and communicated to the assessee through system, fulfilling the requirements of circular number 19/2019 issued by CBDT.

Issue 2: Compliance with CBDT Circular No. 19/2019
The Counsel for the assessee contended that the impugned order was manually passed without a DIN and did not comply with the CBDT circular. The Chief Financial Officer of the assessee trust affirmed that they did not receive the final order or DIN, and screenshots from the IT portal showed only the manual order without a DIN intimation letter. The Counsel referred to a template from the ITBA screen and a judgment of the Delhi High Court to demonstrate the Department's ability to track email delivery.

Conclusion:
The Bench dismissed the Revenue's miscellaneous application, noting that there was no mistake apparent from the record in the order passed by the Bench. Despite the Revenue's claim of generating a DIN number, they failed to substantiate compliance with the CBDT circular. The application was thus rejected, affirming the original order.