Absence of DIN while granting Statutory Approval u/s 153D Income Tax Act: ITAT allows Assesee appeal [Read Order]

The Delhi bench of Income Tax Appellate Tribunal ( ITAT ) while allowing the appeal filed by the assessee Bawa Float Glass Ltd held that absence of Document identification Number ( DIN ) while granting statutory approval under Section 153D of the Income Tax Act, 1961would tantamount to no approval in the eyes of law and the approval under Section 153D Income Tax Act, 1961 is rendered non-est. 

The fact of the case was that the assessee has moved an application for admission of additional ground under Rule 11 of the Income Tax before the tribunal that,

“That the approval under Section 153D of the Act is null, void and without jurisdiction as the same is in violation of CBDT Circular No.19/2019 requiring DIN therefore order of assessment dated 13.05.2021 under Section 153A of the Income Tax Act read with section 143(3) of the Act deserve to be quashed as such”.

During the appeal proceedings before the tribunal counsel for the assessee, Lalit Mohan argued that absence of DIN mentioned in the approval memo, such statutory approval under section 153D is rendered a nonest approval in law. The assessment framed on the basis of such nonest approval is a nullity in the eyes of law.

Further the assessee counsel relied upon the decision of Finesse International Design Pvt. Ltd. vs. DCIT argued that absence of DIN while granting statutory approval under section 153D would tantamount to no approval in the eyes of law and the approval under section 153D is rendered non-est.

Zafarul Haque Tanweer, the Department representative argued that such lapse is only a procedure irregularity. Therefore the technical irregularity which has caused no prejudice to the assessee required to be viewed in a benign manner and such technical lapse would not vitiate the assessment order irreversibly.

It was observed by the tribunal that statutory approval under Section 153D of the Income Tax Act shall not be given by the Additional Commissioner of Income Tax in absence of DIN.

Therefore the two-member bench Of Laxmi Prasad Sahu, ( Accountant member ) and George George K, ( Vice President ) set aside the assessment order passed under section 153A of the Income Tax Act and canceled in view of the legal infirmity of absence of DIN on the body of statutory approval granted under Section 153D of the Act by the competent authority i.e. Addl. Commissioner of Income Tax.

To Read the full text of the Order CLICK HERE

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