AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 229
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.... of hearing submitted that after the Circular No. 19 of 2019 issued by the CBDT, every correspondence or show-cause notice is mandatorily required to mention Document Identification Number (DIN) and if no DIN is generated, then such a show-cause notice is to be construed as without jurisdiction. He further submitted that this aspect has been elaborately considered by the Tribunal in the case of Tata Medical Centre Trust -vs.- CIT reported in [2022] 140 taxmann.com 431 (Kolkata Trib.). In this judgment, ITAT, Kolkata has considered the scope of Circular dated 14.08.2019 and thereafter held that if a show-cause notice is being issued without DIN, then it is to be considered void ab initio. Similarly the Tribunal has observed that if the impugned order does not bear DIN, then it is not sustainable. The Tribunal has reproduced copy of the show-cause notice in its order as well as copy of the impugned order passed under section 263 in the case of Tata Medical Centre Trust. 5. The ld. Counsel for the assessee further submitted that this order of the Tata Medical Centre Trust has been further followed in the case of Smt. Sunita Agarwal -vs.- ITO rendered in ITA No. 432/KOL/2020. The Tr....
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....ning of the tax administration. Presently, almost all notices and orders are being generated electronically on the Income Tax Business Application (ITBA) platform. However, it has been brought to the notice of the Central Board or Direct Taxes (the Board) that there have been some instances in which the notice, order, summons, letter and any correspondence (hereinafter referred to as "communication") were found to have been issued manually, without maintaining a proper audit trail of such communication. 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 Ist day of October, 2019 unless a computer-generated Document Identification Number (DIN) has been allotted and is duly quoted in the body or such commun....
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....lly generated proforma available on the System. 6. An intimation of issuance of manual communication for the reasons mentioned in para 3(v) shall be sent to the Principal Director General of Income-tax (Systems) within seven days from the date of its issuance. 7. Further, in all pending assessment proceedings, where notices were issued manually, prior to issuance of this Circular, the income-tax authorities shall identify such cases and shall upload the notices in these cases on the Systems by 31th October, 2019. 8. Hindi version to follow. Sarita Kumari Director (ITA.II), CBDT (F. No. 225/95/2019-ITA.II) 12. From the perusal of above circular, we note that CBDT came out with this circular to mitigate the issues/ instances where certain notices, orders, summons, letters and other correspondences which have been issued manually do not have proper audit trail of their communication despite various e-govemance initiatives and computerization of its work. Therefore, in order to prevent such instances and to maintain proper audit trail of all the communications, CBDT directed that no communication shall be issued by....
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....the present case since it is relevant only to a communication which is issued electronically. He further pointed out that within this para 3 of the CBDT Circular, it is mentioned that when the communication is issued manually, such communication in its body must state the fact that the said communication is issued manually without a DIN and the date of obtaining of the written approval of the prescribed authority for issue of manual communication in the prescribed format has to be stated therein. In the present case, no such fact of issuing the present order manually without a DIN by obtaining an approval from prescribed authority in the prescribed format is mentioned/ quoted in the body of the impugned order and, therefore, even if the case records are verified, it will not serve any purpose since the impugned order itself does not contain any such factual notation as contemplated in para 3 of the CBDT circular. 12.3. In order to demonstrate how a communication issued electronically containing a DIN would look like, the Ld. Counsel referred to one such notice u/s. 154 dated 08.10.2020 issued on the assessee, placed at paper book page 53, scanned copy of which is reproduce....
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.... the left bottom of the said notice, there is a legend put with an asterisk (*) mark which says 'DIN'. 12.5. In contrast to this, attention of the bench was invited, both to the show cause notice issued pursuant to revisionary proceeding u/s. 263 of the Act dated 23.03.2021 placed at pages 55 to 57 of the paper book, which was issued manually and does not bear any reference to DIN in terms of CBDT circular so also the impugned order passed u/s. 263 which is also issued manually and does not bear any reference to DIN as required by the CBDT circular. The first page and the last two pages of the impugned order are reproduced hereunder for reference, in the context of quoting DIN as contemplated by CBDT circular: OFFICE OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), KOLKATA 6(tm) FLOOR, I OB, MIDDLETON ROW, KOLKATA- 700071 Ph: (033)2229-2926, FAX(033)2229-1719 1. Name of assessee : Tata Medical Centre Trust 6. Whether Resident/Resident but not ordinarily resident/non-resident: Resident Address : 1, Bishop Lefroy Road, Kolkata-700020 7. Method of accounting : Mercantile 3. PAN/GIR No. AABTT2222Q 8. Previous year : 2015-16 4. Status : Trust (a)....
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....s exempt u/s, 11(1 )(d) being capital receipt in nature. Interest accrued/ earned on such fund being revenue in nature is considered as Income from Other Sources. While computing income, the assessee Trust separately included interest of Rs. 91.37 lakhs in computation of income recognising the same as revenue receipt, but interest earned on other earmarked funds to the tune of Rs. 27.31 lakhs was not included in income as well as in computation of income separately. During the course of proceedings u/s. 263, it has been contended that apportionment of the interest amount to the I/E Accounts would not change the colour of the receipt. The assessee has also relied upon several court decision to establish that the interest accrued on corpus fund would be corpus in nature. However, the treatment towards interest on corpus fund being revenue in nature in accepted accounting norms, which has been recognized by the assessee itself in other part. The Assessing Officer also has not noticed the same in assessment erroneously and, therefore, the revenue interest income remained outside the ambit for fulfillment of conditions mentioned in section 11(1) for compulsory application of income @ 85....
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.... its statutory powers under section 119 of the Income-tax Act, which are binding on the authorities in the administration of the Act. Under section 119(2)(a) , however, the circulars as contemplated therein cannot be adverse to the assessee. Thus, the authority which wields the power for its own advantage under the Act is given the right to forgo the advantage when required to wield it in a manner it considers just by relaxing the rigour of the law or in other permissible manners as laid down in section 119. The power is given for the purpose of just, proper and efficient management of the work of assessment and in public interest. It is a beneficial power given to the Board for proper administration of fiscal law so that undue hardship may not be caused to the assessee and the fiscal laws may be correctly applied. Hard cases which can be properly categorized as belonging to a class, can thus be given the benefit of relaxation of law by issuing circulars binding on the taxing authorities." 13.3. In the matter of Nayana P. Dedhia [2004] 270 ITR 572 (AP), the Hon'ble Andhra Pradesh High Court held that the guidelines issued by the Board in exercise of powers in terms of sect....