Assessment orders without Document Identification Number declared invalid following CBDT Circular mandate

The ITAT Delhi allowed the introduction of an additional ground challenging the validity of assessment orders passed without Document Identification Number (DIN). Following CBDT Circular dated 14.8.2019, which mandated quoting computer-generated DIN in all communications and orders, the Tribunal found that orders lacking DIN were invalid. The Revenue's argument regarding exceptional circumstances was rejected as no such reasons were recorded. The decision was supported by coordinate bench precedents, particularly Brandix Mauritius Holdings Ltd., which was confirmed by Delhi HC, establishing that non-compliance with DIN requirements renders assessment orders invalid.

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Issues involved:
The judgment involves the issue of non-compliance with CBDT Circular No. 19/2019 dated 14.08.2019 in relation to assessment orders passed under section 153C of the Income Tax Act, 1961.

Summary:

Issue 1: Compliance with CBDT Circular No. 19/2019
The appeals revolved around the non-compliance with the CBDT Circular No. 19/2019 dated 14.08.2019, specifically regarding the generation/allotment/quoting of a computer-generated Document Identification Number (DIN) in communications and orders. The introduction of an additional ground based on this circular was allowed, citing the discretion of the Tribunal to consider questions of law arising from facts on record, as per the decision in NTPC vs. CIT (1998) 229 ITR 383 (SC).

Issue 2: Validity of Assessment Orders
The assessment orders under section 153C r.w.s. 143(3) of the Income Tax Act were challenged on the grounds of non-compliance with the CBDT Circular. The Tribunal found that the orders did not bear a DIN as required by the circular. Citing similar decisions from the Bombay and Kolkata High Courts, the Tribunal emphasized the importance of quoting the DIN in communications and orders to ensure validity.

Issue 3: Revenue's Argument
The Revenue relied on a communication regarding the provision of a facility for generating Intimation Letters containing DIN for documents issued manually outside the system. However, the Tribunal found that this communication did not support the Revenue's position, as it did not address the exceptional circumstances required by the CBDT Circular for manual issuance of communications.

Conclusion:
Considering the non-compliance with the CBDT Circular No. 19/2019, the Tribunal allowed the additional ground raised by the Assessees and set aside the assessment orders in favor of the Assessees. The Appeals of the Assessees were allowed, and the assessment orders were consequently annulled.

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