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TMI Blog2024 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... while issuing SCN to the assessee. Therefore Communication namely SCN dated 02.03.2022 and Revision order dated 30.03.2022 are not in conformity with Paragraphs 2 3 of this Circular No. 19/2019 issued by CBDT. Therefore the entire Revision proceedings is to be treated as invalid and shall be deemed to have never been initiated. It is appropriate to quote herein the well settled law that Circular issued by CBDT in exercise of its power u/s. 119 of the Act are binding on the Revenue as held by the Hon ble Supreme Court Judgment in the case of K.P. Varghese Vs. ITO [ 1981 (9) TMI 1 - SUPREME COURT] Hon ble Delhi High Court in the case of CIT Vs. Brandix Mauritius Holdings Ltd. [ 2023 (4) TMI 579 - DELHI HIGH COURT] given the language employed in the 2019 Circular, there is neither any scope for debate not is there any leeway for an alternate view. Therefore in our considered opinion, the initiation of Revision proceedings by issuing Show Cause Notice without DIN and passing Revision order without DIN are invalid in law. Appeal filed by the Assessee is hereby allowed. - Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er giving opportunity to the assessee. 3. Aggrieved against this Revision order, the assessee is in appeal before us. Ld. Counsel Mr. Vartik Chokshi appearing for the assessee raised preliminary objection before us that both the show cause notice dated 02.03.2020 and Revision order dated 30.03.2022 passed by the Ld. PCIT does not carry Documents Identification Number (hereafter referred to as DIN ). Therefore as per CBDT Circular No. 19/2019 dated 14.08.2019, the above Revision proceedings itself is invalid in law and the entire Revision proceedings are liable to be quashed. 4. Per contra, ld. CIT-DR Shri Sudhendu Das appearing for the Revenue sought time to get necessary instructions on the non-issuance of DIN No. Hence the above appeal is adjourned to 30.10.2023. The Ld. CIT-DR received instructions from the Office of the PCIT-3, Ahmedabad vide letter dated 26.10.2023. Relevant portion of the letter is produced herein below: ..3. The main issue raised by the assessee i.e. M/s Nova Properties Private Limited is that the notice issued u/s 263 and order passed u/s 263 of the Income-tax Act. 1961 does not bear DINS on the face of notice/order. In this case, notice u/s 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Per contra, the Ld. Counsel appearing for the Assessee drawn our attention to the CBDT Circular No. 19/2019 wherein clause (4) makes it very clear that any notice or order without DIN number shall be treated as invalid and shall be deemed to have never been issued. The assessee s case does not fall under the five exemption circumstances in which DIN could not be provided as mentioned in Para 3 of the above Circular. Further other conditions mentioned in the above circular or not followed by the Office of the PCIT. Thus the entire proceedings is invalid in law and the same deemed to have never been issued to the assessee and hence the entire Revision proceedings is liable to be quashed. 5.1. In support of his arguments, the Ld. Counsel placed before us unreported judgments of the Calcutta High Court in the case of PCIT Vs. Tata Medical Centre Trust in ITA No. 202 of 2023 dated 26.09.2023 and Delhi High Court judgment in the case of CIT (International Taxation) Vs. Brandix Mauritius Holdings Ltd. in ITA No. 163 of 2023 dated 20.03.2023. 6. We have given our thoughtful consideration and perused the materials available on record including the documents filed by the Ld. CIT-DR. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the communication may be issued manually but only after recording reasons in writing in the file and with prior written approval of the Chief Commissioner/Director General of income-tax. In cases where manual communication is required to be issued due to delay in PAN migration, the proposal seeking approval for issuance of manual communication shall include the reason for delay in PAN migration. The communication issued under aforesaid circumstances shall state the fact that the communication 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(1)/3(1)/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 issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2022 issued by office of the PCIT does not carry the DIN. This SCN is uploaded in ITBA, fixing the case for hearing on 08.03.2022 at 12:30 PM with a rider that the Revision proceedings is time barring on 31.03.2022 and if the assessee failed to comply with the notice, then the proceedings shall be finalized on the basis of materials available on record and also informed that no adjournment will be granted in any circumstances to the assessee. 6.3. The Office of the PCIT in its letter dated 26.10.2023 states DIN bearing no. ITB/REV/M/REVI/2021-22/1040270718(1) was generated on 02.03.2022 and duly communicated to the assessee by Speed Post bearing no. EG223084503IN on 03.03.2022 and the assessee has quoted this DIN in its reply uploaded in the ITBA. 6.4. The Office of the PCIT further stated that the Revision order dated 30.03.2022 passed u/s. 263 was without DIN, however DIN No. ITB/REV/M/REVI/2021-22/1040270718(1)was subsequently communicated to the assessee on 31.03.2022. From the above submissions of the Office of the PCIT, we do not find that none of the exceptional circumstances as mentioned in Para 3 (i) to (v) of this Circular No. 19/2019 has arisen for non-quoting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in query to the revenue to point out how a DIN intimation explained by the Commissioner of Income miscellaneous application seeking for rectification of the fact, raised a specific letter along with the manual order as explained by the Commissioner of Income Tax (Exemption) in his reply fulfils the categorical requirement mandated by the CBDT Circular, more particularly, in paragraph 2 of the said Circular, that the body of the communication, the order under Section 263 of the Act, must contain the fact and that the communication issued referred to the DIN without justifying as to how the non-compliance of the CBDT Circular dated 14th August, 2019, which was noted by the Tribunal when it passed the main order. The Tribunal notes that this specific query was unable to be answered by the revenue and therefore the learned Tribunal came to the conclusion that the order passed under Section 263 does not satisfy the requirement mandated by the CBDT Circular. Thus, we find no substantial question of law arises for consideration in this appeal. Accordingly, the appeal is dismissed. 7.2. The Hon ble Delhi High Court in the case of CIT Vs. Brandix Mauritius Holdings Ltd. (cited s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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