TaxTMI 
TaxTMI 
2022 (11) TMI 34
X X X X Extracts X X X X
X X X X Extracts X X X X
.... furnishing the reasons for initiation of re-assessment proceedings to the Appellant beyond a reasonable period despite multiple requests made by the Appellant seeking reasons. 3. BUY-BACK DOES NOT RESULT INTO TAXABLE CAPITAL GAINS UNDER THE ACT 3.1 That on the facts and in the circumstances of the case and in law, the learned AO/ Hon'ble DRP erred in ignoring that there should not have been any tax liability under the Act as the transaction of buy-back does not result in any taxable income under the Act since: a. Section 46A of the Act merely characterizes the gain on account of buy-back as 'capital gains' but neither there is a charge of tax created by section 46A of the Act nor section 2(24) of the Act covers this gain within its scope; b. Without prejudice to the above, given the fact that Appellant is the parent company of Brandix Apparel India Private Limited ("BAIPL"), the buy-back undertaken by BAIPL would be covered by the exemption under clause (iv) of section 47 of the Act. 4. BUY-BACK DOES NOT RESULT INTO TAXABLE CAPITAL GAINS UNDER THE RELEVANT TAX TREATY 4.1. That, on the facts and in the circumstances of the case and in law, the learned AO/ Hon'ble ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Hon'ble Tribunal to decide on the appeal in accordance with the law. 3. Vide letter dated 19.08.2022, the assessee has raised the following additional grounds of appeal: "7. Ground No. 7: On the facts and circumstances of the case & in law, the Learned Assessing Officer ('Ld. AO') grossly erred in not providing the copy of mandatory sanction, if any, obtained under section 151 of the Income-tax Act, 1961 ('the Act') containing necessary satisfaction and endorsement of the concerned Learned Commissioner of Income-tax, and thus, the initiation of reassessment proceedings and reopening of assessment deserves to be held as invalid and bad in law. 8. Ground No. 8: On the facts and circumstances of the case & in law, the Learned Assessing Officer ('Ld. AO') erred in issuing the final assessment order under section 147/ 1440(13)/ 143(3) of the Income-tax Act, 1961 ('the Act') dated 15 October 2019 without quoting the mandatory document identification number ('DIN') in conformity with Para-2 and Para-3 of Circular No. 19/2019 dated 14 August 2019 and thus, the said final assessment order deserves to be held as invalid, bad in law and void-ab-initio. 9. Ground No. 9: On the facts ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y with Para-2 and Para-3 of Circular No. 19/2019 dated 14 August 2019 and thus, the said final assessment order deserves to be held as invalid, bad in law and void-ab-initio.:" 7. A perusal of the record shows that the final assessment order along with notice of demand is dated 15.10.2019 and it is an undisputed fact that it has been passed/issued without quoting Document Identification Number [DIN], which is mandatory as per CBDT Circular No. 19/2019 dated 14.08.2019. 8. The ld. DR vehemently stated that DIN was generated but due to upgradation, it was not reflected in the order. It is the say of the ld. DR that the error is not so fatal as to make the assessment order null and void. It would be pertinent to refer to CBDT Circular No. 19/2019 which reads as under: Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Circular No. 19/2019 New Delhi, dated the 14th August, 20 19 Subject: Generation/Allotment/Quoting of Document Identification Number in Notice/ Order /Summons /letter /correspondence issued by the Income-tax Department - reg. With the launch of various e-governance initiatives, Incometax Department is moving toward t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng approval for issuance of manual communication shall include the reason for delay in PAN migration. The communication issued under aforesaid circumstances shall state the fact that the communication is issued manually without a DIN and the date of obtaining of the written approval of the Chief Commissioner / Director General of Income-Tax for issue of manual communication in the following format- ... . . .. This communication issues manually without a DIN on account of reason/reasons given in para 3 (i)/3(iI)/3 (iii)/3 (iv)/3 (v) of the CBDT Circular No ... dated .... . (strike off those which are not applicable) and with the approval of the Chief Commissioner / Director General oj Income Tax vide number .... dated .. .. " 4. Any communication which is not in conformity with Para-2 and Para-3 above, shall be treated as invalid and shall be deemed to have never been issued. 5. The communication issued manually in the three situations specified in para 3- (i), (ii) or (iii) above shall have to be regularised within 15 working days of its issuance, by - i. uploading the manual communication on the System. ii. compulsorily generating the DIN on the System; iii. commun....