TaxTMI 
TaxTMI 
2022 (7) TMI 1334
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....that the period from 15.03.2020 to 28.02.2022 is to be excluded for the purpose of computing the limitation period during the COVID-19 pandemic. Further, a period of 90 days is allowed after 28.02.2022 vide same order. Considering the facts and the explanation of the assessee placed on record, we condone the delay in filing the appeal and admit it for adjudication. 3. Before us, Shri Akshay Ringasia, CA & Shri Tarak Nath Jaiswal, Advocate represented the assessee and Shri Deb Kr. Sonowal, CIT, DR represented the department. 4. The solitary ground taken by the assessee in Form 36 filed in the present appeal is on challenging the jurisdiction assumed by the ld. CIT(E) for invoking the provisions of section 263 of the Act and passing the order therein. In the course of hearing before the Tribunal, assessee took an additional ground vide its submission dated 30.06.2022 and prayed for its admission and adjudication. The additional ground taken by the assessee is reproduced as under: "That the order passed by the Ld. PCIT is null and void as it fails to mention any DIN number on its body or adhere to Circular No. 19/2019 by the CBDT." 5. Assessee states that it is filin....
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....orting total income for Rs. Nil. Assessee is assessed to income-tax by the Assistant Commissioner of Income-tax, Circle-1(1) (Exempt), Kolkata. Case of assessee was selected for scrutiny for which statutory notices were issued and were complied by the assessee. Assessment was completed for which the order was passed u/s. 143(3) of the Act dated 04.12.2018 determining total income at Rs. NIL. Subsequently, Ld. CIT(E), Kolkata initiated revisionary proceeding u/s. 263 of the Act proposing to revise the aforementioned assessment order for which a show cause notice dated 23.03.2021 was issued on the assessee, placed in the paper book at pages 55 to 57. The said show cause notice required the assessee to submit its reply within six days i.e. by 30.03.2021. Assessee filed its reply on 30.03.2021 and the Ld. CIT(E) passed the impugned order u/s. 263 of the Act on 31.03.2021 by rejecting the contentions of the assessee. Aggrieved, assessee is in appeal before this Tribunal. 8. Before delving into the grounds of appeal set forth in the Memorandum of Appeal in Form 36 filed by the assessee, Ld. Counsel for the assessee insisted and prayed to adjudicate upon the additional ground (supra) w....
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....ed by the Income-tax Authority, as invalid. Ld. CIT, DR further submitted that the case records can be referred to ascertain if the DIN was actually generated or not and it is merely an inadvertent mistake because of which it remained to be quoted in the impugned order. He thus strongly opposed to the contentions made by the Ld. Counsel claiming to hold the impugned order as 'invalid or deemed to have never been issued'. 11. We have heard the rival submissions and perused the material available on record and given our thoughtful consideration to the submissions made by both the parties. Before adverting on the issue in hand, the CBDT Circle No. 19/2009 dated 14.08.2019, copy of which is placed in the paper book pages 68-69, is reproduced hereunder for ready reference: Circular No. 19 /2019 Government of lndia Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, dated the 14th August, 2019 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, Income-tax Depa....
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.... to be issued due to delay in PAN migration, the proposal seeking 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 or Income-Tax for isse uor 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 I Director General of 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 communi....
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....hout DIN, fact of which along with its written approval has to be stated in the body of the said communication, failing which, para 4 of the said circular states that such communication shall be treated as 'invalid' and shall be deemed to have never been issued'. 12.1 On a specific query by the bench to the Ld. CIT, DR to point out if there was any exceptional circumstance which led to the manual issue of the order u/s. 263 of the Act, he pointed out that the only possibility of exceptional circumstance as mentioned in the CBDT Circular, could be as listed in para 3(i) which mentioned that "when there are technical difficulties in generating /allotting/quoting the DIN and issuance of communication electronically". For this he requested for verification of the case records. 12.2 On this aspect, Ld. Counsel for the assessee submitted that it is undisputed and verifiable fact that the impugned order is not an electronic communication but a manual order as is evident from the perusal of the order itself. It is an order which has been passed manually and page 9 of the said order does not even bare a full and proper signature of the Ld. CIT(E), Kolkata. Page 10 of the said order be....
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....s and arguments, we note that it is an undisputed fact that the impugned order u/s. 263 of the Act has been issued manually which does not bear the signature of the authority passing the order. Further, from the perusal of the entire order, in its body, there is no reference to the fact of this order issued manually without a DIN for which the written approval of Chief Commissioner/Director General of Income-tax was required to be obtained in the prescribed format in terms of the CBDT circular. We also note that in terms of para 4 of the CBDT circular, such a lapse renders this impugned order as invalid and deemed to have never been issued. 13.1 It is also important to note about the binding nature of CBDT circular on the Income-tax Authorities for which gainful guidance is taken from the decision of Hon'ble Supreme Court in the case of CIT v. Hero Cycles [1997] 228 ITR 463 (SC) wherein it was held that circulars bind the ITO but will not bind the appellate authority or the Tribunal or the Court or even the assessee. 13.2 In the case of UCO Bank [1999] 237 ITR 889 (SC), Hon'ble Supreme Court while dealing with the legal status of such circulars, observed thus (page 896): ....
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....lt with the issue relating to CBDT circular which according to the Department cannot defeat the provisions of law. While giving its observations and finding on the issue, the Hon'ble Court referred to the decision of Hon'ble Chhattisgarh High Court in the case of Sunita Finlease Ltd (supra), which are as under: 7. We have considered the rival submissions advanced by the learned Advocates. Even assuming that the intention of CBDT was to restrict the time for selection of the cases for scrutiny within a period of three months, it cannot be said that the selection in this case was made within the aforesaid period. Admittedly, the return was filed on 29th October, 2004 and the case was selected for scrutiny on 6th July, 2005. It may be pointed out that Mrs. Gutgutia was, in fact, reiterating the views taken by the learned Tribunal which we also quoted above. By any process of reasoning, it was not open for the learned Tribunal to come to a finding that the department acted within the four corners of Circulars No.9 and 10 issued by CBDT. The circulars were evidently violated. The circulars are binding upon the department under section 119 of the I.T. Act. 8. Mrs. Gutgu....
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....ted Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication. Relevant portion of circular reproduced as under: "2. In order to prevent such instances and to maintain proper audit trail of all communication, the Board in exercise of power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has decided that no communication shall be issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person, on or after the 1st day of October, unless a computer-generated Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication. 2019 3. In exceptional circumstances such as, (i) when (ii) there are technical in difficulties generating/allotting/quoting the DIN and issuance of communication electronically; or when communication regarding enquiry, verification etc. is required to be iss....
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.... the factual position absence of quotation of Computer Generated DIN in the body of assessment order shall be treated as invalid and shall be deemed to have never been issued, as per binding CBDT Circular. Considering the position, it is requested to declare the assessment order as null and void ab initio. 3.1.3 That it may pertinent to mention that the circular specify five exceptional circumstances wherein order can be issued manually. But for same there is binding condition that order issued manually only after recording reasons in writing in the tile and with prior written approval of the Chief Commissioner/Director General of income-tax. The communication issued under exceptional 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 case under consideration, in manual order u/s 263 no information has been provided that order has been issued manually without a DIN, neither it Document 4Traceback (most recent call last): File "C:....
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....owards normal course of activities of the assessee during the year. Thus deduction of Rs 5,18,29,615 as Apportion from patient care fund in the I&E A/c from the income of the assessee without corresponding deduction in the expenditure side has actually resulted in irregular increase in Deficit for the AY 2016-17 by the same amount. SAVYASACHI KUMAR Note: If digitally signed, the date of digital signature may be taken as date of document. ROOM NO:5/7,5TH FLOOR, INCOME TAX OFFICE, 10 B, MIDDLETON ROAD, KOLKATA, KOLKATA, West Bengal, 700071 Email: [email protected], Office Phone:03322296081 DIN- Document identification No. Document 6 INCOME TAX DEPARTMENT OFFICE OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), KOLKATA 6TH FLOOR, 10B, MIDDLETON ROW, KOLKATA-700071 Ph: (033)2229-2926, FAX(033)2229-1719 1. Name of assessee: Tata Medical Centre 6. Whether Resident/Resident but not Trust Address: 1, Bishop Lefroy Road, Kolkata-700020 3. PAN/GIR No. AABTT2222Q 4. Status: Trust (a) If HUF, is higher rate of tax applicable? (b) If company, whether (i) Domestic/Others (ii) Public substantially interested/ P....