Assessment order without DIN is Violation of CBDT Circular 2019: ITAT declares order Void ab initio [Read Order]

The Pune bench of Income Tax Appellate Tribunal (ITAT) has held that assessment order passed without Document Identification Number (DIN) is violation of Central Board Direct Tax (CBDT) circular 2019. Therefore, the bench declared the order void ab initio.

The assessee Kimberly Clark India Pvt. Ltd filed the appeal against order of assessment passed by the Dy. Commissioner of Income Tax Circle for the assessment year 2015-16.

In the appeal, the assessee challenged the validity of the impugned order in the light of Circular No. 19/2019 issued by the CBDT.

The Counsel for the revenue submitted that  the impugned order of assessment indeed bears the DCR Number and thus corresponding Document Identification Number must have been generated in compliance with the CBDT Circular which however remained to be quoted in the body of order while communicating to the assessee.

The tribunal determined that to prevent manual practice of issuance of notice, order, summons, letter  and to maintain proper audit trail of all communication the CBDT in exercise of power under Section 119 of the Income Tax Act, vide circular No. 29/2019 dated 14/08/2019 has mandated the income tax authority with effect from 01/10/2019 for generation, allotment and communication of computer generated DIN in relation to any assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc.

The para 2  of the CBDT circular 2019  mandates for DIN compliance,  however para 3 thereof provided for the five exceptional circumstances wherein manual communication is permitted without initially complying with the DIN requirement, but it was subjected to regularisation within a period of 15 working days of such manual issuance.

Further relied upon the decision of the Delhi High Court in ‘CIT Vs Brandix Mauritius Holdings Ltd.’ has held that the "Communication in relation to assessments, appeals, orders etc., which finds mention in paragraph 2 of the 2019 circular, albeit without DIN, can have no standing in law, having regard to the provisions of paragraph 4 of the 2019 circular.”

Therefore, the two members of Rajpal Yadav, (Vice-President)  and Rajesh Kumar, (Accountant Member)observed that  the assessment  order bears no DIN in the body of the assessment. Thus, the order undisputedly was communicated in violation of Para-2 of CBDT Circular.

Further, the Revenue  failed to bring on record any material showcasing that the case of the assessee falls within any of the five exceptional circumstances provided in Para-3 and accompanying therewith further evidentiary documents establishing the regularisation of initial manual issuance in terms Para-5 thereof.

The Counsel Prashant Gadekar appeared for the revenue and Percy Pardiwalla appeared for the assessee.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates