ITAT Voids Assessment Order for Lacking DIN; Land Inherited at Nil Cost Results in No Capital Gain.

The appeal was allowed by the ITAT due to the invalidity of the assessment order, which lacked a Document Identification Number (DIN) as required by CBDT Circular No.19/2019, rendering it void ab initio. Additionally, the land in question, inherited under Mahar Vatan, was acquired at a Nil cost, resulting in no capital gain as per relevant SC decisions. Consequently, other grounds of appeal were deemed academic and not adjudicated. The decision was pronounced on 12th October 2023.

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Issues:
The appeal filed against the order of the Commissioner of Income Tax (Appeals) under section 250 of the Income Tax Act, 1961 for A.Y.2012-13. The grounds of appeal include passing an ex-parte order without adjudicating on merit, adoption of valuation under section 50C without referring to the DVO, treating Gross Receipts as income under Capital Gain, and issuing the order without generating a Document Identification Number (DIN).

Grounds of Appeal:
1. The Assessing Officer erred in passing an ex-parte order and not adjudicating on merit, violating the principle of natural justice. Request for a hearing before lower authorities.
2. The Assessing Officer adopted valuation under section 50C without referring to the DVO, violating provisions, and treated Gross Receipts as income under Capital Gain without considering the property's nature as agricultural land under Mahar Vatan, where no transfer occurred.
3. Additional grounds raised include the order issued without a DIN, taxing entire gross receipts as capital gain without considering the ancestral nature of the land, and taxing the entire amount without completion of the transaction, requesting deduction under section 54F.

Findings & Analysis:
The assessment order lacked a Document Identification Number (DIN), deemed invalid as per CBDT Circular No.19/2019, which requires a DIN for communication. The absence of DIN renders the communication void ab initio. The Hon'ble Bombay High Court decision in Ashok Commercial Enterprises Vs. ACIT supports that an assessment order without DIN is invalid. As the order in this case lacks a DIN, it is considered invalid, and the additional ground regarding the absence of DIN is allowed.

The land received by the assessee from ancestors under Mahar Vatan was acquired free of cost, resulting in a Nil cost of acquisition as per relevant Supreme Court decisions. Therefore, no capital gain arises. Given the favorable legal ground decision, other grounds raised become academic, and there is no need for further adjudication.

In conclusion, the appeal of the assessee is allowed based on the invalidity of the assessment order without a DIN and the Nil cost of acquisition for the inherited land. The order was pronounced in the open court on 12th October 2023.

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