2024 (1) TMI 1470

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....nder Section 153A r.w.s 143(3) of the Income Tax Act, 1961 (the Act) concerning Assessment Year 2018-19. 2. As per the grounds of appeal, the assessee has raised legal ground towards assumption of jurisdiction under section 153A of the Income Tax Act, 1961. The assessee has also challenged the addition of Rs.25,00,000/- under section 69C r.w.s 115BBE of the Act on merits. 3. Before the Tribunal, the assessee has moved an application for admission of additional ground under Rule 11 of the Income-tax (Appellate Tribunal) Rules, 1963 vide letter dated 21.12.2023, which reads as under: "That the approval u/s 153D of the Act is null, void and without jurisdiction as the same is in violation of CBDT Circular No.19/2019 requiring DI....

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....ome-tax Act dated 12.05.2021 (F.No. Addl.CIT(CR)-02/2021- 22/68) and pointed out that neither the communication by AO to addl. CIT nor the approval by the Addl. CIT under s. 153D in response to requisition made by the AO bears any reference to DIN number which is mandatory requirement of law in the light of sweeping landscape of CBDT circular. The revenue has also not demonstrated as to whether the draft assessment order sent by AO for approval under section 153D bears any DIN either. In the absence of DIN mentioned in the approval memo, such statutory approval under section 153D is rendered a nonest approval in law. It goes without saying that assessment framed on the basis of such nonest approval is a nullity in the eyes of law. 7. The....

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....the legality of approval granted by Additional Commissioner of Income Tax under section 153D owing to absence of any Document Identification Number (DIN) generated while granting the statutory approval. We find that the issue is no longer res integra and has been examined in length in the case of Finesse International Design Pvt. Ltd. vs. DCIT reported in 157 taxmann.com 271 (Delhi). Other several judgments which underscores the mandatory nature of generation and mentioning of DIN in the body of communication of such order has been referred therein. In consonance with view expressed in Finesse International, we find merit in the case made out by the assessee in the additional ground. The additional ground is thus allowed and the assessment ....