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2023 (6) TMI 270 - AT - Income TaxValidity of assessment Order framed on Non quoting the mandatory document identification number ( DIN ) - AO communicated the DIN after the expiry of 15 days - Whether, the subsequent communication issued by the Assessing Officer generating the DIN in respect of the assessment order will satisfy the conditions of CBDT Circular No. 19/2019 dated 14.08.2019 and cure the deficiency in issuing the assessment order manually without generating the DIN ? - HELD THAT - Paragraph 3 of the circular carves out certain exceptions to paragraph 2 by providing that under certain exceptional circumstances, enumerated in clause (i) to (v) of paragraph 3, the communication may be issued manually but only after recording reasons in writing not only in the file and with prior written approval of the Chief Commissioner/Director General of Income-tax, but, the communication issued manually in such circumstances must also state the reasons why communication is issued manually without a DIN and must also mention the date and number of written approval of the Chief Commissioner/Director General of Income-tax for issuing manual communication. In the facts of the present appeal, admittedly, the assessment order issued manually by the Assessing Officer without generating DIN does not contain any reasons recorded by the Assessing Officer for issuing the order manually without DIN and the number date of the approval granted by the CCIT. Thus, there cannot be any manner of doubt that the Assessing Officer has issued the assessment order without complying with the conditions enshrined in paragraph No. 2 3 of CBDT Circular, referred to above. That being the factual position, in terms of paragraph No. 4 of the said Circular, the assessment order has to be declared as invalid and shall be deemed to have never been issued. As relying on case of CIT vs. Brandix Mauritius Holdings Ltd. 2023 (4) TMI 579 - DELHI HIGH COURT we have no hesitation in holding that the impugned assessment order is invalid and shall be deemed to have never been issued. Accordingly, we quash the impugned assessment order. Decided in favour of assessee.
Issues Involved:
1. Validity of the assessment order due to non-compliance with CBDT Circular No. 19/2019 requiring mandatory Document Identification Number (DIN). Summary: Issue 1: Validity of Assessment Order due to Non-compliance with CBDT Circular No. 19/2019 The assessee raised an additional ground challenging the assessment order as null and void for violating CBDT Circular No. 19/2019, which mandates a DIN for any communication issued after October 1, 2019. The Tribunal admitted this purely legal and jurisdictional issue for adjudication. The facts reveal that the assessee's assessment order was issued manually on 24.12.2021 without a DIN, and a subsequent communication with the DIN was issued on 03.02.2022. The assessee argued that the assessment order did not meet the conditions of paragraphs 2 and 3 of the Circular, rendering it invalid as per paragraph 4 of the Circular. The Revenue contended that the manual issuance was due to technical exigencies and had prior approval from the Chief Commissioner of Income Tax (CCIT). The Tribunal examined the Circular, which requires all communications to have a DIN unless exceptional circumstances are documented, and prior approval from the CCIT is obtained. The Tribunal found that the assessment order lacked reasons for manual issuance and the required approval details. Citing the Delhi High Court's decision in CIT vs. Brandix Mauritius Holdings Ltd., the Tribunal held that non-compliance with the Circular renders the assessment order invalid and deemed to have never been issued. Consequently, the Tribunal quashed the impugned assessment order and set aside the order of the Commissioner of Income-tax (Appeals). The remaining grounds were deemed academic and not adjudicated. Order pronounced in the open court on 30/05/2023.
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