Assessment order under Section 143(3) with Section 153C invalid without Document Identification Number

The ITAT Delhi held that an assessment order framed under Section 143(3) read with Section 153C without a Document Identification Number (DIN) is invalid and void. Following the precedent in Nirmala Devi v. DCIT, the tribunal ruled that failure to comply with DIN requirements renders the assessment order nonest in law, as if never issued. The Board's circular mandates that manual communications require proper approval and must indicate exceptional circumstances. Since the assessment order did not conform to these requirements, it was declared null and void. The assessee's appeal was allowed.

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Issues Involved:
1. Validity of Assessment Order due to absence of Document Identification Number (DIN).

Summary:

1. Validity of Assessment Order due to absence of Document Identification Number (DIN):
The primary issue raised by the assessee in the appeal was the absence of the Document Identification Number (DIN) in the Assessment Order dated 29.09.2021. The assessee argued that this omission violated CBDT Circular No. 19/2019 dated 14.08.2019, rendering the order null and void. The Departmental Representative (DR) did not dispute the absence of the DIN in the Assessment Order.

The Tribunal referenced its earlier decision in the case of Nirmala Devi Vs. DCIT, where it was held that an assessment order without a DIN is invalid and nonest in law as per the CBDT Circular No. 19/2019. The Tribunal reiterated that the CBDT Circular mandates the inclusion of a DIN in all communications issued by the Income Tax Department, and any communication without a DIN is to be treated as invalid.

The Tribunal also cited the Hon'ble Delhi High Court's order dated 20.03.2023 in ITA No. 163/2023, which upheld the Tribunal's decision that an assessment order lacking a DIN is invalid and deemed to have never been issued. The High Court emphasized that the purpose of the 2019 Circular was to create an audit trail and ensure transparency, and therefore, any communication without a DIN has no standing in law.

In light of these precedents and the unchanged factual matrix, the Tribunal concluded that the Assessment Order for the A.Y. 2020-21 in the case of the assessee is treated as nonest and invalid due to the absence of a DIN.

Conclusion:
The appeal of the assessee was allowed, and the Assessment Order dated 29.09.2021 was declared null and void. The order was pronounced in the open court on 03/01/2024.

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