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2023 (10) TMI 268 - AT - Income Tax


Issues involved:
The issues involved in this case are the validity of the assessment order passed u/s 153C/143(3) of the Income Tax Act, 1961, the presence of a valid Document Identification Number (DIN) in the assessment order, and the significance of the DIN in communication as per CBDT Circular no. 19/2019.

Validity of Assessment Order:
The appeal was filed by the Assessee against the order of CIT(A)-24, New Delhi, challenging the assessment order passed u/s 153C/143(3) of the Income Tax Act, 1961 by the DCIT, CC-7, Delhi. The Assessee raised grounds questioning the validity of the proceedings u/s 153C, highlighting defects in the satisfaction note and the lack of a valid DIN in the assessment order. The AR argued that the absence of a DIN rendered the assessment order void ab initio. The DR defended the assessment order, emphasizing the meticulous consideration by the CIT(A) and the presence of a valid DIN. The bench considered the absence of the DIN number on the assessment order, referencing a previous case where the issue of DIN was discussed. It was concluded that the non-mention of DIN on the body of the communication rendered the assessment order null and void, as per the seriousness attached to this issue by the Board. Consequently, the appeal was allowed, and the assessment order was set aside.

Presence of Valid DIN:
The key contention revolved around the presence of a valid Document Identification Number (DIN) in the assessment order. The AR argued that the absence of DIN in the assessment order made it void ab initio, citing the CBDT Circular no. 19/2019. The DR, on the other hand, defended the assessment order, highlighting the generation of DIN and its communication to the Assessee. The bench analyzed the issue of DIN, emphasizing the importance of a valid DIN to authenticate communication and ensure compliance with the CBDT Circular. It was observed that the assessment order lacked the DIN number on its body, despite a simultaneous DIN being generated and communicated. The bench concluded that the absence of DIN on the communication rendered the assessment order null and void, in line with the Board's seriousness regarding the mention of DIN in communications.

Significance of DIN in Communication:
The significance of the Document Identification Number (DIN) in communication was a crucial aspect of the case. The bench referred to Circular no. 19/2019, which mandated the mention of DIN in communications. It was noted that the assessment order itself is a form of communication and should comply with the requirements of the Circular. The bench highlighted the necessity of generating DIN before signing the assessment order, as it is a condition precedent for making a valid assessment. The bench emphasized that the absence of DIN on the assessment order rendered it non-est, underscoring the importance of DIN in ensuring the validity of communications from tax authorities.

Separate Judgement:
The order was pronounced by the bench comprising Sh. Shamim Yahya, Accountant Member, and Sh. Anubhav Sharma, Judicial Member, on 27th September, 2023.

 

 

 

 

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