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TMI Blog2023 (9) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... o have never been issued as per para 4 of the CBDT Circular since it is not in conformity with the same. In respect of observation of registry about the inordinate delay in filing of the present appeal before the Tribunal, the reasons stated by the assessee are directly linked to the issue relating to DIN and its intimation to the assessee by which the assessment order was made available to it, only on 16.03.2023. Considering this fact, we condone the delay as observed by the registry. Accordingly, ground no. 1 taken by the assessee is allowed. - Shri Sonjoy Sarma, Judicial Member And Shri Girish Agrawal, Accountant Member For the Appellant : Shri Ketan Ved, CA and Shri Alpesh Gupta, CA For the Respondent : Shri Kallol Mistry, JCIT, Sr. DR ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. DCIT, Circle-11(1), Kolkata dated 22.04.2022 passed u/s. 143(3) read with section 144C r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as the Act ) for AY 2017-18. 2. Assessee has taken as many as eight grounds of appeal including sub-grounds in each of them. However, Ld. Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing of industrial gasses and engineering goods. It filed its return of income on 30.11.2017, reporting a loss of Rs.123,41,80,381/-. This return was subsequently revised on 25.03.2019 with a loss of Rs.122,67,39,659/-. 4.1. Ld. Counsel for the assessee at the outset referred to the first page of the impugned assessment order passed u/s. 143(3) read with section 144C and 144B of the Act dated 22.04.2022 to demonstrate that it is an order passed manually by the Ld. AO. From the first page of the body of the order placed at page 11 of the paper book, he pointed out that there is no mention of DIN thereon. He then took the Bench through all the pages of the said assessment order and submitted that even on the last page no reference is mentioned about the DIN generation and its documentation. 4.1. Ld. Counsel also referred to the computation sheet generated along with the assessment order which is also manually prepared document and does not contain DIN in its body. The same is placed at pages 22 to 25 of the paper book. He specifically pointed out to the column titled as DIN Documents No. which is left blank in the computation sheet. Scanned copy of the same is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order is ought to be treated as invalid and deemed to have never been issued. 8.3. Para 18 of the said order of the Hon ble High Court is extracted below for ready reference: 18 Whether the impugned assessment order dated 28th September 2021 is invalid on account of it being issued without a DIN? (a) The CBDT, in exercise of powers under Section 119(1) of the Act, has issued a Circular No. 19/2019 dated 14th August 2019 providing that no communication shall be issued by any Income Tax Authority inter alia relating to assessment orders, statutory or otherwise, inquiries, approvals, etc. to an assessee or any other person on or after 1st October 2019 unless a computer generated DIN has been allotted and is quoted in the body of such communication. The Circular reads as under: CIRCULAR NO.19/2019 (E NO.225/95/2019-ITA.II], DATED 14-8-2019 With the launch of various e-governance Initiatives, Income tax Department is moving toward total computerization of its work. This has led to a significant improvement in delivery of services and has also brought greater transparency in the functioning of the tax-administration Presently; almost all notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 following format- ....... This communication issues manually without a DIN on account of reason/reasons given in para3(i)/3(ii)/3(iii)/3(iv)/3(v) of the CBDT Circular No .... dated (strike off those which are not applicable) and with the approval of the Chief Commissioner/Director General of Income Tax vide number .... dated .... 4. Any communication which is not in conformity with Para-2 and Para-3 above, shall be treated as invalid and shall be deemed to have never been issued. 5. The communication issued manually in the three situations specified in para 3- (i), (ii) or (iii) above shall have to be regularised within 15 working days of its issuance, by- i. uploading the manual communication on the System. ii. compulsorily generating the DIN on the System; iii. communicating the DIN so generated to the assessee/any other person as per electronically generated pro-forma available on the System. 6. An intimation of issuance of manual commun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 Circular; which would sustain the communication of the final assessment order manually- albeit, without DIN. 16.1. Given this situation dearly paragraph 4 of the 2019 Circular would apply. 17. Paragraph 4 of the 2019 Circular; as extracted hereinabove, decidedly provides that any communication which is not in conformity with paragraph 2 and 3 shall be treated as invalid and shall be deemed to have never been issued. The phraseology of paragraph 4 of the 2019 Circular fairly puts such communication, which includes communication of assessment order; in the category of communication which are non-est in law. 17.1. It is also well established that circulars issued by the CBDT in exercise of its powers under Section 119 of the Act are binding on the revenue. xxxxxxxxxxx 18. The argument advanced on behalf the appellant/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 2019 Circular. 19. The object and purpose of the issuance of the 2019 Circular, as indicated hereinabove, inter alia, was to create an audit trail. Therefore, the communication relating to assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the orders of the authorities below. 10. We have heard the rival contentions and perused the material available on record. Ld. Counsel has evidently demonstrated before us that impugned assessment order and its computation sheet have been passed manually and all the three documents namely, the assessment order, computation sheet and notice of demand u/s. 156, do not contain DIN in their body, as the relevant box is left blank. 10.1. Further, an intimation has been sent about DIN in respect of the impugned assessment order which is much later, after the date of assessment order. Fact in this respect is that assessment order is dated 22.04.2022 and the intimation letter about the DIN is dated 18.01.2023 which has been issued on 08.02.2023. 10.2. In view of the above discussions and the facts on record, we respectfully following the decision of Hon ble High Court of Bombay(supra) as well as Hon ble High Court of Delhi (supra) as also the decision of Coordinate Bench of ITAT, Kolkata in the case of Tata Medical Centre Trust (supra), we hold that the impugned assessment order is invalid and is deemed to have never been issued as per para 4 of the CBDT Circular since it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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