Assessment order invalidated for non-compliance with DIN circular; Commissioner's order set aside; Revenue's appeal dismissed

The Tribunal held that the assessment order was invalid and deemed to have never been issued due to non-compliance with the CBDT circular requiring a Document Identification Number (DIN). Consequently, the Commissioner's order was set aside, and the Revenue's appeal was dismissed as infructuous. The assessee's appeal was allowed.

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Issues Involved:
1. Validity of the assessment order due to the absence of a Document Identification Number (DIN).

Summary:

Validity of the Assessment Order:
The primary issue in the assessee's appeal was the validity of the assessment order dated 31.12.2019, which did not contain a Document Identification Number (DIN). The assessee argued that according to Circular No. 19/2019 issued by the Central Board of Direct Taxes (CBDT), any communication from the Income-tax authority after 1st October 2019 must include a computer-generated DIN. The circular also specifies that in exceptional circumstances, a manual communication can be issued, but it must record reasons in writing and obtain prior written approval from the Chief Commissioner/Director General of Income-tax. The assessee contended that the assessment order did not meet these requirements and should be deemed invalid.

The Revenue countered that the assessment order was issued manually due to technical difficulties, and the DIN was generated within 15 working days as per paragraph 5 of the CBDT circular. However, the Tribunal found that the assessment order did not include the required reasons for manual issuance or the date and number of approval from the Chief Commissioner/Director General of Income-tax, thus failing to comply with the conditions of the circular.

The Tribunal referred to the CBDT Circular No. 19/2019, which mandates that any communication not conforming to its provisions shall be treated as invalid and deemed to have never been issued. The Tribunal also cited the Delhi High Court's decision in CIT vs. Brandix Mauritius Holdings Ltd., which reinforced the binding nature of CBDT circulars under Section 119 of the Income-tax Act.

Conclusion:
The Tribunal held that the impugned assessment order was invalid and deemed to have never been issued due to non-compliance with the CBDT circular. Consequently, the order of the Commissioner (Appeals) was set aside. The Tribunal did not adjudicate the remaining grounds raised by the assessee, as they became academic. The Revenue's appeal was dismissed as infructuous. The assessee's appeal was allowed, and the Revenue's appeal was dismissed.

Order Pronouncement:
The order was pronounced in the open court on 30/05/2023.

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