Assessment order invalid without DIN quoted before signing by Assessing Officer, subsequent generation irrelevant

ITAT Delhi held that an assessment order passed by AO without quoting Document Identification Number (DIN) is invalid, even if DIN was generated subsequently. Following Brandix Mauritius Holdings Ltd. precedent and Circular No. 19/2019, the Tribunal ruled that DIN must be generated prior to uploading the document and quoted before physical signing by AO. Subsequent DIN generation and intimation to assessee are inconsequential for assessment purposes. The impugned AO order was quashed as deemed never passed. Assessee's appeal was allowed.

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

Summary:

Issue 1: Validity of the Assessment Order Due to Non-Compliance with CBDT Circular No.19/2019 Requiring Mandatory DIN

The primary issue raised by the assessee was the validity of the assessment order dated 27.12.2019, which lacked the mandatory Document Identification Number (DIN) as required by CBDT Circular No.19/2019 dated 14th August 2019. The assessee argued that the absence of DIN rendered the assessment order void ab initio, thereby invalidating the jurisdiction assumed by the Assessing Officer (AO).

The Tribunal examined the contents of CBDT Circular No.19/2019, which mandates that no communication shall be issued by any income-tax authority without a computer-generated DIN. The circular specifies that in exceptional circumstances, communications may be issued manually but must include the reasons for not generating a DIN and must have prior written approval from the Chief Commissioner/Director General of Income-tax. Paragraph 4 of the circular explicitly states that any communication not conforming to these requirements shall be treated as invalid and deemed never to have been issued.

Upon review, the Tribunal found that the AO's order did not mention a DIN nor provided reasons for its absence, nor did it include the required approval. This non-compliance with the circular rendered the AO's order invalid. The Tribunal referenced the Delhi High Court's decision in CIT vs Brandix Mauritius Holdings Ltd. (2023)(4) TMI 579 (Delhi High Court), which upheld that communications without a DIN are non-est in law and that circulars issued under Section 119 of the Act are binding on the revenue authorities.

The Tribunal also considered the case of Abhimanyu Chaturvedi vs DCIT, where it was held that the generation of a DIN is a condition precedent for making an assessment manually or otherwise, and an order without a DIN is non-est. The Tribunal concluded that the simultaneous issuance of a DIN number without mentioning it in the body of the communication is insignificant and a superfluous exercise.

As a result, the Tribunal quashed the AO's order for non-compliance with the mandatory DIN requirement, rendering the rest of the grounds academic and not requiring adjudication.

In conclusion, the appeal filed by the assessee was allowed, and the assessment order was deemed invalid and quashed.

Order pronounced in the open court on this 20th day of November, 2023.

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