The Delhi Bench of Income Tax Appellate Tribunal (ITAT), held that assessment order for addition under Section 69A of Income Tax Act,1961 as unexplained income, not followed by mandate document identification number (DIN) in accordance to CBDT(Central Board of Direct Taxes) circular to be treated as invalid.
The assessee in this case is Hardik Rao. The assessment order was framed under Section 143 (3) read with Section 153C of Income Tax Act by the Assessing Officer (AO) but it did not have mandatory DIN.
The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], against the order of AO but the first appellate authority confirmed additions of 15,93,770/- and Rs. 23,907/- and treated them as unexplained money under Section 69A of Income Tax Act by ignoring the fact that assessee’s name is not appearing anywhere in any of the statements recorded during the course of search.
Further aggrieved the assessee filed an appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)].
The Authorised Representatives for the assessee Ved Jain and Aman Garg, contended that the assessment order issued by AO is void since null and void as the same is in violation of CBDT circular No. 19/2019 requiring mandatory DIN.
T. Jamesh Singson appeared as Departmental Representative.
The Two member Bench comprising of N. K. Billaiya, Accountant Member and Anubhav Sharma, Judicial Member referred to its own decision in case of Brandix Mauritius Holdings Limited where on the ground of appeal that final assessment order deserves to be held as invalid, bad in law and void ab initio, it was held, “the assessment order is invalid and deemed to have never been issued as it fails to mention DIN in its body by adhering to Circular No. 19/2009”.
This decision of the tribunal was upheld by Delhi High Court by observing that, “the object and purpose of the issuance of the 2019 Circular, as indicated hereinabove, inter alia, was to create an adult trail.Therefore, the communication relating to assessments, appeals, orders etcetra which find mention in paragraph 2 of the 2019 Circular albeit without DIN, can have no standing in law,”
Thus the Tribunal held the assessment order void and nonest and allowed the appeal of the assessee.
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