Minor delays in uploading Assessment Orders or generating DIN will not render assessments unsustainable: ITAT [Read Order]

The Chandigarh bench of the Income Tax Appellate Tribunal (ITAT) observed that minor delays in uploading assessment orders or generating Document Identification Number (DIN) will not render assessments unsustainable.

The assessee company initially reported a taxable income of Rs. 8,59,050/-. A search in 2018 revealed the company had set up sub-contractor firms, using them to falsely claim expenses and reduce profits.

The Assessing Officer, based on an Investigation Wing report, issued a notice in 2019, alleging Rs. 10,30,66,089/- in bogus expenses. The AO believed this amount escaped assessment due to the company’s failure to fully disclose material facts about accommodation entries, remaining unverified in the original and returned income assessments.

The counsels for the assessee Ashwani Kumar, Aditya Kumar and Muskan Garg argued that the absence of DIN in the Assessment Order rendered it invalid and challenged the legitimacy of the proceedings. The failure to adhere to prescribed procedures and upload the order on the e-filing portal further emphasized procedural deficiencies.

The Appellant contended that the assessment was legally flawed and should be quashed, highlighting the importance of adherence to procedural requirements for both taxpayers and tax authorities in the e-proceedings framework.

The counsel for the respondent Sarabjeet Singh argued that the non-inclusion of Director Identification Number (DIN) in the assessment order was simply an error or, at most, a defect that should not have invalidated the assessment proceedings and the substantive order, reference was made to Section 292B of the Income Tax Act.

The two member bench of the tribunal comprising Aakash Deep Jain (Vice President) and Vikram Singh Yadav (Accountant Member) concluded that Section 153(3) did not impose a limitation period for issuing, uploading, or communicating orders. In a case where the assessment order was made on 31/03/2022 but uploaded, and DIN generated on 01/04/2022, with communication on 03/04/2022, the Court rejected claims of limitation. It underscored the legislative distinction between Sections 153(1) and 153(2) (stricter timelines) and Section 153(3) (more lenient), stating a one-day delay did not render the assessment legally unsustainable.

In the result, the appeal of the assesse was partly allowed.

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