Invalid assessment order quashed for lack of DIN compliance per CBDT Circular

The Tribunal found the assessment order to be invalid due to non-compliance with CBDT Circular No. 19/2019, which mandates a Document Identification Number (DIN) for communications issued after October 1, 2019. As the order was manually issued without a DIN and lacked necessary approval details, it was deemed null and void. The Tribunal quashed the assessment order and set aside the Commissioner of Income-tax (Appeals) decision, with remaining grounds not adjudicated.

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Issues Involved:
1. Validity of the assessment order due to non-compliance with CBDT Circular No. 19/2019 requiring mandatory Document Identification Number (DIN).

Summary:

Issue 1: Validity of Assessment Order due to Non-compliance with CBDT Circular No. 19/2019

The assessee raised an additional ground challenging the assessment order as null and void for violating CBDT Circular No. 19/2019, which mandates a DIN for any communication issued after October 1, 2019. The Tribunal admitted this purely legal and jurisdictional issue for adjudication.

The facts reveal that the assessee's assessment order was issued manually on 24.12.2021 without a DIN, and a subsequent communication with the DIN was issued on 03.02.2022. The assessee argued that the assessment order did not meet the conditions of paragraphs 2 and 3 of the Circular, rendering it invalid as per paragraph 4 of the Circular. The Revenue contended that the manual issuance was due to technical exigencies and had prior approval from the Chief Commissioner of Income Tax (CCIT).

The Tribunal examined the Circular, which requires all communications to have a DIN unless exceptional circumstances are documented, and prior approval from the CCIT is obtained. The Tribunal found that the assessment order lacked reasons for manual issuance and the required approval details. Citing the Delhi High Court's decision in CIT vs. Brandix Mauritius Holdings Ltd., the Tribunal held that non-compliance with the Circular renders the assessment order invalid and deemed to have never been issued.

Consequently, the Tribunal quashed the impugned assessment order and set aside the order of the Commissioner of Income-tax (Appeals). The remaining grounds were deemed academic and not adjudicated.

Order pronounced in the open court on 30/05/2023.

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