Appeals allowed due to absence of Document Identification Number

The appeals challenged the final assessment orders for AY 2017-18 and 2018-19 due to the absence of a Document Identification Number (DIN) in the orders. The Tribunal found that the manual orders issued by the Assessing Officer (AO) without a DIN were invalid as they did not comply with the CBDT Circular No. 19/2019. The Tribunal emphasized that communications without a DIN are non-est in law unless exceptional circumstances are documented and approved. Consequently, the Tribunal allowed the appeals for both assessment years, declaring the orders invalid.

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Issues Involved:
1. Validity of the Assessment Order due to absence of Document Identification Number (DIN).

Summary:

Issue 1: Validity of the Assessment Order due to absence of Document Identification Number (DIN)

The appeals challenge the order of the Assistant Commissioner of Income Tax for AY 2017-18 and 2018-19. The assessee, engaged in IT enabled services, filed returns declaring NIL income under normal provisions and book profits under section 115JB. The returns were processed, and scrutiny was initiated. The Transfer Pricing Officer made adjustments, and the Assessing Officer (AO) passed a draft assessment order with disallowances and adjustments. The Dispute Resolution Panel (DRP) upheld most adjustments, leading to the final assessment order.

The assessee contested the final order on legal grounds, primarily focusing on the validity of the order due to the absence of a DIN. The final order was passed manually without a DIN, contrary to CBDT Circular No. 19/2019, which mandates quoting a DIN in all communications. The assessee argued that the manual order did not follow the procedure for exceptional circumstances outlined in the circular, making the order invalid.

The Department contended that the order was regularized by generating a DIN through a separate intimation, which should be considered part of the order. However, the Tribunal noted that the circular requires the DIN to be quoted in the body of the order and that any non-conforming communication is deemed invalid.

The Tribunal referenced the Delhi High Court's decision, which emphasized that communications without a DIN are non-est in law unless exceptional circumstances are documented and approved. The Tribunal found that the AO's manual order did not comply with these requirements, rendering it invalid.

For AY 2018-19, similar facts and findings applied. The Tribunal concluded that the orders for both assessment years were invalid due to non-compliance with the CBDT circular, and therefore, the appeals were allowed.

Order pronounced in the open court on 24/04/2023.

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