DIN Absence: ITAT Remands Matter for Reconsideration [Read Order]

The bench of the Income Tax Appellate Tribunal, Amritsar, remanded the case to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication. The Tribunal directed that the issue relating to the absence of a Document Identification Number (DIN) in the assessment order be considered afresh, along with other grounds raised by the assessee under the Income Tax Act, 1961.

The appeal was filed by Fayaz Ahmed Beig of Srinagar against the order of the CIT(A), Delhi, dated March 22, 2024, which had upheld the assessment order passed by the Income Tax Officer, Ward-1, Srinagar, under Section 147 read with Section 144 of the Income Tax Act, 1961, for the Assessment Year (A.Y) 2012-13.

The assessee had originally filed his return of income on March 15, 2013, declaring an income of ₹1,46,976, which was processed under Section 143(1). Subsequently, based on information about cash deposits of ₹10.16 lakh and other financial transactions amounting to ₹26.94 lakh, the Assessing Officer (A.O) reopened the assessment under Section 148.

In the absence of proper explanation or representation, the assessment was completed determining a total income of ₹19.11 lakh, including ₹12.31 lakh as unexplained cash deposits, ₹2.15 lakh as presumptive income at 8% of deposits, and ₹5.32 lakh as estimated profit.

The CIT(A) dismissed the appeal due to the assessee’s non-representation and failure to respond to notices sent to the e-mail address registered on the e-filing portal.

Appearing for the appellant Sh. Bashir Ahmad, contended that the assessment order passed under Section 147 read with Section 144 was invalid since it lacked a Document Identification Number (DIN). It was submitted that CBDT Circular No. 19/2019 dated August 14, 2019, mandates quoting a DIN in all communications issued by the Income Tax Department from October 1, 2019, onwards.

It was argued that the absence of DIN in the body of the assessment order or in the notice of demand under Section 156 rendered the proceedings void ab initio, as per Paragraph 4 of the said circular, which states that any communication issued without a DIN shall be deemed invalid and treated as if it were never issued.

Appearing for the Department, Sh. Charan Dass, submitted that the issue of absence of DIN was never raised before the CIT(A) and did not form part of the grounds of appeal in Form No. 35. It was contended that a valid DIN had been generated on December 3, 2019, corresponding to the assessment order passed under Section 147 read with Section 144, and was duly communicated to the assessee. Hence, there was no procedural irregularity.

The Bench comprising Accountant Member, Manoj Kumar Aggarwal and Judicial Member, Udayan Dasgupta observed that the CIT(A) had dismissed the appeal for non-representation without considering the merits. It was noted that although notices were issued to the e-mail address on record, there was no evidence of notices being sent to the e-mail ID mentioned in Form No. 35.

The Tribunal held that the contention regarding the absence of DIN was raised for the first time before it and had not been adjudicated by the CIT(A). Therefore, the Bench deemed it appropriate to remand the matter back to the CIT(A) for fresh consideration on all grounds of appeal contained in Form No. 35.

The Tribunal directed the assessee to cooperate fully and submit all relevant documents and evidence before the appellate authority, while also instructing the CIT(A) to ensure that future notices are issued to the correct e-mail address provided in Form No. 35.

The Tribunal further clarified that it had not adjudicated upon the merits of the case and that all legal issues, including the DIN contention, were left open.

Accordingly, the appeal was allowed for statistical purposes.

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