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TMI Blog2023 (9) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as invalid and shall be deemed to never have been issued. Further, in the circular 19/2019 the CBDT has also prescribed some exceptional circumstances wherein the AO can issue any manual communication without DIN but there will be proper recording of reasons in the specified format and prior approval of designated authorities has to be taken before issuance of such communication. Thereafter, such manual communication has to be regularized within 15 days of its issuance. the argument advanced on behalf the revenue, that recourse can be taken to Section 292B of the Act, is untenable, having regard to the phraseology used in paragraph 4 of the circular 19/2019. The object and purpose of the issuance of the 2019 Circular was to creat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income for the asst. year 2017-18 on 30.11.2017 declaring total income of Rs. 83,82,41,730/-, The case was selected for scrutiny by NFAC under CASS and notice u/s.143(2) of the Income-tax Act,1961 ['the Act' for short] was issued on 09.08.2018 and duly served on the assessee. Therefore, notices u/s 142(1) of the Act along with detailed questionnaire was issued on 19.02.2019. Thereafter, on 25.01.2021, there was change in incumbent from Jurisdictional A.O to under Faceless Assessment Scheme, 2019. 2.1 Subsequently, other notices with detailed and relevant questionnaires dated 15/02/2021 & 11/03/2021 were issued. In response to the above notices the assessee furnished reply, which considered and kept on record by the AO. Vide this s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irection 1 SWD segment 20,17,70,516 20,17,70,516/- 2 ITeS segment 39,36,65,250 30,85,12,723/- Total 51,02,83,239/- 2.5. Further, there was also addition towards disallowance of CST expenditure of Rs.1,50,56,157/-, disallowance of legal & professional fee at Rs.2,61,44,548/-, disallowance of legal & professional fees paid to residents at Rs.10,74,049/-. Against this assessee is in appeal before us. 3. At the outset, the ld. A.R. argued on ground Nos.2 & 3 stating that the ld. DRP's directions dated 29.6.2022 was passed without Document Identification Number (DIN), which is bad in law and therefore consequent assessment order passed on 19.7.2022 is bad in law. Accordingly, he prayed that the final assessment order dated 19.7.2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income-tax (Internationa Taxation) Circle 1(1)(2), New Delhi, which is a company against which draft asessment order was passed by the Assessing Officer (AO/Revenue) on 30.12.2018. The assessee had filed its objections before Dispute Resolution Panel (DRP) which were disposed of by the DRP via order dated 20.9.2019. Thereafter, the final assessment order was passed by the AO on 15.10.2019 u/s 147/144(C)(13)/143(3) of the Act. The major issue which has been originated in the final assessment order was, that it was issued by the AO without quoting Document Identification Number (DIN) in body of such communication. 5.4 Aggrieved by the order of AO the Assessee preferred an appeal before the Income Tax Appellate Tribunal (ITAT) wherein th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al question of law arises for consideration, which, inter alia, would require the Hon'ble High Court to examine whether the issue is debatable or if there is an alternate view possible? Decision of the Hon'ble High Court: 5.8 The Hon'ble court observed that it is well established that circulars issued by the CBDT in exercise of its powers u/s 119 of the Act are binding on the revenue and this principle stands enunciated in a long line of judgements including the judgements of Hon'ble Supreme Court in various cases. 5.9 It has been further observed that the argument advanced on behalf the revenue, that recourse can be taken to Section 292B of the Act, is untenable, having regard to the phraseology used in paragraph 4 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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