The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) observed that Initiation of revision proceedings by issuing Show Cause Notice (SCN) without DIN is invalid.
The issue to be decided was initiation of Revision proceedings by issuing Show Cause Notice without DIN and passing Revision order dated 30.03.2022 without DIN are invalid in law.
In 2017-18, Nova Properties Pvt. Ltd., a major Real Estate player, faced legal scrutiny for a significant disparity in sales turnover figures in its tax returns. The Assessing Officer’s investigation led to show cause notices, but the scrutiny concluded with the acceptance of declared income in the assessment order dated 22.11.2019. Nova Properties’ legal journey raises questions about financial transparency and tax regulation interpretation in Real Estate.
The assesse counsel initiated Revision proceedings due to a critical error, setting a hearing before the time bar on 31.03.2022. The assesse objected, but the assesse counsel annulled the assessment. The assesse appealed, citing the absence of DIN as per CBDT Circular No. 19/2019, seeking the quashing of Revision proceedings.
Contrary to the initial claim, the Dr.Shri Sudhendu Das, representing the Revenue, requested time for the absence of DIN. The counsel for the respondent clarified that valid DINs were present in the notice and order under section 263, making them legally valid, as acknowledged by the assesse in their reply.
The assesses counsel, citing CBDT Circular No. 19/2019, argued that the absence of Document Identification Number (DIN) renders the Revision proceedings invalid, referencing unreported judgments for support.
The counsel for the respondent argued that CBDT Circular No. 19/2019, dated 14-08-2019, mandates computer-generated Document Identification Numbers (DIN) in all Income-tax Department communications, with specific exceptions and regularization procedures outlined.
According to the analysis of a two-member bench of the Tribunal- Anupama Gupta (Accountant member) and T.r. Senthil Kumar (Judicial member), commencing Revision proceedings by issuing a Show Cause Notice without a Document Identification Number (DIN) and issuing a Revision order dated 30.03.2022 without DIN is legally invalid. Consequently, the appeal filed by the Assesse was granted.
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