Assessment order without Document Identification Number invalid and loses legal validity under CBDT Circular 19/2019

The ITAT Delhi held that an assessment order without a Document Identification Number (DIN) is invalid and loses its validity. The AO's order contained no DIN number in its body, and subsequent separate communication of DIN was deemed a superfluous exercise. The tribunal distinguished this from a mere mistake correctable under Section 292B of the Income Tax Act. Following the jurisdictional HC decision in CIT vs Brandix Mauritius Holdings Ltd., the tribunal ruled that communications relating to assessments without DIN have no legal standing per CBDT Circular 19/2019. The assessee's appeal was allowed.

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Issues Involved:

1. Validity of the assessment order due to non-mentioning of DIN.
2. Applicability and interpretation of CBDT Circular No.19/2019.
3. Impact of subsequent communication of DIN.

Summary:

1. Validity of the assessment order due to non-mentioning of DIN:
The assessee challenged the assessment order dated 04.12.2019, arguing it was null and void as it violated CBDT Circular No.19/2019 by not mentioning a DIN. The Tribunal admitted the additional ground as it went to the root of the matter. The Tribunal found that the assessment order did not mention a DIN, nor provided reasons for not doing so, rendering the order invalid. The Tribunal referred to the Delhi High Court's decision in CIT vs Brandix Mauritius Holdings Ltd., which held that an assessment order without a DIN is non-est in law.

2. Applicability and interpretation of CBDT Circular No.19/2019:
The Tribunal examined CBDT Circular No.19/2019, which mandates that all communications by income-tax authorities must include a computer-generated DIN, unless issued under exceptional circumstances with prior approval. The circular aims to create an audit trail and enhance transparency. Paragraph 4 of the circular stipulates that any communication not conforming to these requirements shall be treated as invalid and deemed never to have been issued.

3. Impact of subsequent communication of DIN:
The Revenue argued that the DIN was generated and communicated to the assessee via a letter dated 06.12.2019. However, the Tribunal held that subsequent communication of DIN is superfluous and does not validate the original assessment order. The Tribunal referred to its own decision in Abhimanyu Chaturvedi vs DCIT, which emphasized that the assessment order itself must mention the DIN to be valid.

Conclusion:
The Tribunal quashed the assessment order for non-compliance with CBDT Circular No.19/2019, rendering the remaining grounds academic. The appeal filed by the assessee was allowed. The order was pronounced on November 1, 2023.

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