Assessment order under Section 143(3)/153A without mandatory DIN number declared void ab initio and non-existent

ITAT Delhi held that assessment order u/s 143(3)/153A without mandatory DIN number is void ab initio and non est. Following Brandix Mauritius Holdings Ltd. and Abhinav Chaturvedi precedents, the tribunal ruled that absence of DIN number renders assessment order as never issued, vitiating all consequential proceedings. Despite no specific ground raised before CIT(A), CBDT Circular No.19/2019 being binding on revenue authorities necessitated treating assessment as void from inception. Decision favored assessee against revenue.

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Issues Involved:
1. Legality of the assessment order due to the absence of a Document Identification Number (DIN).
2. Consequences of the assessment order being incomplete when uploaded on the Income Tax Business Application (ITBA).

Summary:

Issue 1: Legality of the Assessment Order Due to Absence of DIN

The appeal was preferred by the Revenue against the order of the Commissioner of Income Tax (Appeals)-23, New Delhi, which arose from an order passed under Section 143(3) read with Section 153A of the Income Tax Act, 1961. The respondent assessee filed an application under Rule 27 of the Income-tax (Appellate Tribunal) Rules, 1963, claiming that the assessment order dated 30.03.2022 is null and void as it violated CBDT Circular No. 19/2019, which mandates a DIN for all communications. It was evident that the assessment order did not have a DIN on its face, and the DIN was issued separately. The Tribunal, referencing the judgment of the Hon'ble Delhi High Court in CIT (International Taxation) vs. Brandix Mauritius Holdings Ltd., and the order of the coordinate Bench in the case of Abhinav Chaturvedi, concluded that the assessment order is non est in light of Circular No. 19/2019 of the CBDT.

The Circular mandates that no communication shall be issued by any income tax authority without a computer-generated DIN, except in exceptional circumstances, which must be documented with prior written approval. Any communication not in conformity with this requirement is deemed invalid and considered never issued. The Tribunal noted that the assessment order did not mention the reasons for manual issuance or the requisite approval, thus failing to comply with the Circular.

Issue 2: Consequences of the Assessment Order Being Incomplete When Uploaded on ITBA

The Tribunal observed that the assessment order was passed manually and uploaded on ITBA later, with the DIN generated subsequently. The instructions from the Directorate of Income Tax (System) require that the DIN must be generated and quoted on the document before it is signed and uploaded. The Tribunal emphasized that the assessment can be considered 'made' only when the DIN is quoted on the order before it is signed. The subsequent intimation of DIN generation is not part of the assessment order itself. Therefore, the absence of a DIN on the assessment order at the time of signing renders it non-est.

Since the assessment order did not conform to the mandatory requirements of the Circular and instructions, it was considered void ab initio, with all consequential proceedings vitiated. The Tribunal, exercising its power under Section 254(1) of the Act, set aside the assessment order and dismissed the Revenue's appeal.

Order pronounced in the open court on 30.11.2023.

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