TaxTMI 
TaxTMI 
2023 (10) TMI 1554
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....the Circular No. 19 of 2019 dated 14.8.2019 issued by the CBDT. Accordingly, he submitted that the impugned assessment orders should be considered as in valid and deemed to have been not issued, as observed by the CBDT in the above said circular. He submitted that Hon'ble Bombay High Court has rendered its decision on an identical issue in the case of Ashok Commercial Enterprises Vs. ACIT (W.P. No. 2595 of 2021 and others dated 4.9.2023). 3. The Learned AR further submitted that the Coordinate Bench of the Mumbai ITAT has held in the case of Teleperformance Global Services Pvt. Ltd. Vs. ACIT (ITA No. 2814 & 2815/Mum/2022 dated 24.4.2023) that the assessment order issued manually without DIN, which is not in conformity with the CBDT circular, is invalid and shall be deemed to have never been issued. He submitted that the identical view has been expressed by the Bangalore Bench of the Tribunal in the case of Dilip Kothari (2023) 146 taxman.com 442. 4. The Learned AR further submitted that the Assessing Officer has issued a separate order intimating DIN of the assessment orders. However, Hon'ble Bombay High Court has held in the case of Ashok Commercial En....
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....mber 2021 is invalid on account of it being issued without a DIN? (a) The CBDT, in exercise of powers under Section 119(1) of the Act, has issued a Circular No. 19/2019 dated 14th August 2019 providing that no communication shall be issued by any Income Tax Authority inter alia relating to assessment orders, statutory or otherwise, inquiries, approvals, etc. to an assessee or any other person on or after 1st October 2019 unless a computer generated DIN has been allotted and is quoted in the body of such communication. The Circular reads as under : CIRCULAR NO.19/2019 (F. NO.225/95/2019-ITA.II], DATED 14-8-2019 With the launch of various e-governance Initiatives, Income tax Department is moving toward total computerization of its work. This has led to a significant improvement in delivery of services and has also brought greater transparency in the functioning 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 of Direct Taxes (the Board) that there have been some instances in which t....
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....unication 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 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 communication on the System. ii. compulsorily generating the DIN on the System; iii. communicating the DIN so generated to the assessee/any other person as per electronically generated pro-forma 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....
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.... 4 of the 2019 Circular, as extracted hereinabove, decidedly provides that any communication which is not in conformity with paragraph 2 and 3 shall be treated as invalid and shall be deemed to have never been issued. The phraseology of paragraph 4 of the 2019 Circular fairly puts such communication, which includes communication of assessment order, in the category of communication which are non-est in law. 17.1. It is also well established that circulars issued by the CBDT in exercise of its powers under Section 119 of the Act are binding on the revenue. xxxxxxxxxxx 18. The argument advanced on behalf the appellant/revenue, that recourse can be taken to Section 292B of the Act, is untenable, having regard to the phraseology used in paragraph 4 of the 2019 Circular. 19. The object and purpose of the issuance of the 2019 Circular, as indicated hereinabove, inter alia, was to create an audit trail. Therefore, the communication relating to assessments, appeals, orders, etcetera which find mention in paragraph 2 of the 2019 Circular, albeit without DIN, can have no standing in law, having regard to the provisions of paragraph 4 of the 2019 Circular. ....