2024 (7) TMI 1742 - AT - Income Tax

Validity of Section 153C assessments where approval lacked a DIN: absence of DIN renders the order void and set aside.

Approval of a draft assessment under search-related proceedings without recording a Document Identification Number (DIN) on the body of the statutory ... Validity of proceedings u/s 153C - approval granted u/s 153D by the Addl. CIT to the draft assessment order is without issuance of DIN - whether curable defect u/s 292B? HELD THAT:- Considering the factual matrix of the case and judicial precedents, as the matter have reached the respective Hon’ble High Courts and that the findings of the Tribunal have been upheld in case of Brandix Mauritius Holding Ltd. [2023 (4) TMI 579 - DELHI HIGH COURT] and Tata Medical Centre Trust[2023 (9) TMI 1324 - CALCUTTA HIGH COURT] Thus, the issue of non maintaining of DIN on the body of the statutory order is a defect which is not even curable u/s 292B of the Act because in the absence of DIN on the body of the order, the said order is deemed to never been issued. We, therefore, respectfully following the collective wisdom as expounded in various decisions rendered by the Coordinate Benches across the Country, do not see any justifiable basis to deviate from the same. The impugned order passed u/s 153C r/w 143(3) cannot be upheld and deserve to be set-aside as the same has been passed in violation of CBDT Circular no 19/2019 r/w CBDT and Circular No 27/2019 and the same is hereby treated as non-est in eyes of law. Assessee’s appeal is allowed. Issues: (i) Whether the assessment orders passed under section 153C r/w section 143(3) (and related approvals under section 153D) are invalid and liable to be set aside because the departmental communications/approvals do not bear the computer-generated Document Identification Number (DIN) as required by CBDT Circular No. 19/2019.Analysis: The Tribunal examined whether the approval under section 153D and consequential assessment orders complied with the mandatory requirement of quoting a computer-generated Document Identification Number (DIN) in the body of the communication as mandated by CBDT Circular No. 19/2019 (and relevant follow-on circulars). The Tribunal considered the admitted fact that the approval under section 153D did not mention a DIN, the provisions of the CBDT Circular (including the statement that communications not conforming to the Circular shall be treated as invalid), and the body of judicial precedents from coordinate Benches and High Courts addressing the effect of omission of DIN. Having regard to the Circular's mandatory language, the consistent line of Tribunal and High Court decisions holding communications lacking DIN to be non-est, and the absence of distinguishing jurisdictional precedent adverse to the assessee, the Tribunal concluded that the statutory approval without DIN is a non-est communication and that any assessment order founded on such an approval is void ab initio. The Tribunal therefore did not adjudicate the other substantive grounds of appeal as they became academic following quashing of the assessment order.Conclusion: The assessment orders passed under section 153C r/w section 143(3) (and the approvals under section 153D lacking DIN) are invalid and are set aside; conclusion is in favour of the assessee.