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2023 (10) TMI 841 - AT - Income TaxAssessment order u/s 153C without mentioning DIN - Whether curable defect? - HELD THAT - Assessment order without DIN number and without any mention regarding non generation of DIN number in the body of assessment order is not a curable defect which can be removed or rectified by way of subsequent generation of DIN number on 14.01.2022. Therefore respectfully following case of PCIT vs. M/s. Tata Medical Centre Trust 2022 (7) TMI 1334 - ITAT KOLKATA and Abhimanyu Chaturvedi 2023 (8) TMI 378 - ITAT DELHI we hold that the impugned assessment order is non-est in the eyes of law being passed without complying with the binding circular of CBDT dated 14.08.2019 - Assessee appeal allowed.
Issues involved:
The issues involved in the judgment include jurisdiction u/s 153C of the Income-tax Act, 1961, validity of assessment order without DIN, compliance with CBDT circulars, mechanical approval u/s 153D, obligation to grant cross-examination, addition of unexplained cash and profits, and non-compliance with legal requirements. Jurisdiction u/s 153C: The appeal challenged the assumption of jurisdiction u/s 153C of the Act, questioning the delay in recording satisfaction note and the manner of passing the assessment order. The Hon'ble Supreme Court's judgment in CIT vs Calcutta Knitwears and CBDT Circular No 24/2015 were cited to support the argument that the jurisdiction was wrongly upheld by the CIT(A)-24, New Delhi. Validity of Assessment Order without DIN: The issue of the assessment order lacking a Document Identification Number (DIN) was raised, contending that it rendered the order non-est in the eyes of the law. Reference was made to a recent judgment of the Hon'ble High Court of Calcutta and an order of ITAT Delhi, emphasizing the mandatory requirement for all departmental orders to have a DIN number as per CBDT circulars. Compliance with CBDT Circulars: The non-compliance with CBDT Circular No. 19/2019 dated 14.08.2019 regarding the necessity of a DIN number on departmental orders was a central point of contention. The judgment highlighted the legal consequences of failing to adhere to the circular, rendering orders without DIN numbers as invalid and non-existent in the eyes of the law. Mechanical Approval u/s 153D: The approval granted u/s 153D was challenged on grounds of being granted mechanically without proper application of mind. The issue raised concerns about the procedural correctness and the need for a thorough review before granting such approvals. Obligation to Grant Cross-Examination: The contention regarding the obligation to grant cross-examination rights during the assessment process was brought up. The argument emphasized the importance of providing opportunities for cross-examination, especially when assessments are completed based on statements relied upon by the Assessing Officer. Addition of Unexplained Cash and Profits: The addition of amounts as unexplained cash and profits under section 69A of the Act was disputed. The appeals challenged the CIT(A)-24's confirmation of these additions, questioning the basis and validity of such inclusions in the assessment. Non-Compliance with Legal Requirements: Overall, the judgment focused on the non-compliance with legal requirements, particularly related to DIN numbers on assessment orders, and the implications of such non-compliance on the validity of the orders. The decision emphasized the importance of adhering to CBDT circulars and legal mandates in conducting assessments and issuing orders.
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