The Supreme Court stayed the High Court’s observation on Mandatory Allocation of “DIN” While Communicating Notice, Order, and Summon. The appeal arose out of the impugned final judgment and order passed by the High Court Of Delhi at New Delhi.
Before the High Court, the appellant revenue challenged the order passed by the Income Tax Appellate Tribunal [“the Tribunal”] concerning Assessment Year (AY) 2011-12.
The Tribunal, via the impugned order, has allowed the appeal filed by the respondent/assessee, Brandix Mauritius Holdings by taking recourse to the Central Board of Direct Taxes [“CBDT”] Circular no. 19/2019 dated 14.08.2019 [2019 Circular], which sets out how Document Identification Number [“DIN”] is required to be generated while communicating a notice, order, summon, letter and any correspondence issued by the Income Tax Department, i.e., the Revenue.
The High Court concluded that the object and purpose of the issuance of the 2019 Circular, was to create an audit trail. Therefore, the communication relating to assessments, appeals, orders, etcetera which is mentioned 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.
The bench comprising Justice B V Nagarathna and Justice Augustine George Masih issued notice to the respondent. Mr. Vaibhav Niti, counsel, accepted the notice on behalf of the respondent.
The Court further stayed the impugned order dated 20.03.2023 as well as the order of the ITAT dated 19.09.2022, until further orders.
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