Tribunal quashes assessment orders for AY 2014-15 and AY 2017-18 due to procedural and jurisdictional defects.

The Tribunal allowed both appeals for AY 2014-15 and AY 2017-18, quashing the assessment orders due to procedural and jurisdictional defects. The assessment proceedings were deemed invalid, and the additions made were deleted.

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Issues Involved:
1. Limitation of passing the assessment order under Section 144 read with Section 147 of the Income Tax Act.
2. Validity of the assessment order without a Document Identification Number (DIN).
3. Jurisdiction and issuance of notice under Section 143(2) of the Income Tax Act.

Summary:

Issue 1: Limitation of Passing the Assessment Order
The assessee argued that the assessment order served via email on 06.01.2020 was beyond the limitation period prescribed under Section 153 of the Income Tax Act, despite the assessment order being dated 30.12.2019. The Tribunal found no evidence to support the claim that the order was made after 31.12.2019 and rejected this ground of appeal.

Issue 2: Validity of Assessment Order Without DIN
The assessee contended that the assessment order dated 30.12.2019 was invalid as it did not contain a DIN, violating CBDT Circular No. 19 of 2019. The Tribunal examined the circular, which mandates that all communications by income-tax authorities must include a DIN unless exceptional circumstances are documented. The Tribunal found that the assessment order did not comply with these requirements and thus deemed it invalid and considered it as never issued. Consequently, the additions made in the assessment order were also invalidated, and the appeal for AY 2014-15 was allowed.

Issue 3: Jurisdiction and Issuance of Notice Under Section 143(2)
For AY 2017-18, the assessee argued that the assessment order was void as the jurisdictional Assessing Officer (AO) did not issue a notice under Section 143(2). The Tribunal noted that notices under Section 143(2) were issued by non-jurisdictional AOs before the case was transferred to the jurisdictional AO, who did not issue a fresh notice. Citing precedents, the Tribunal held that the absence of a valid notice under Section 143(2) by the jurisdictional AO rendered the assessment proceedings void ab initio. The Tribunal quashed the assessment order for AY 2017-18, rendering other grounds of appeal moot.

Conclusion:
Both appeals for AY 2014-15 and AY 2017-18 were allowed, with the Tribunal quashing the respective assessment orders due to procedural and jurisdictional defects. The orders pronounced on 17th March 2023 concluded that the assessment proceedings were invalid, and the additions made were deleted.

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