TaxTMI 
TaxTMI 
2026 (7) TMI 1034
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....r, learned counsel for the respondent Assessee in ITA No.55/2024. Also heard Sri K. Arvind Kamath, learned Additional Solicitor General of India, along with Sri Y.V. Raviraj, learned Senior Standing Counsel, and Sri M. Dilip, learned Junior Standing Counsel, for the appellants-Revenue, and Sri Hemanth Venkatray Pai, learned counsel for the respondent-Assessee in ITA No.216/2023. 2. Since these appeals involve identical questions of law, they were heard together and are being disposed of by this common judgment. 3. This Court, by order dated 31.01.2026, admitted ITA No.55/2024 to consider the following substantial question of law: "Whether the Tribunal was right in law and fact in quashing the assessment order when the DIN was duly generated by DRP while passing the direction and when the final assessment order was also passed after generation of DIN?" 3.1 This Court, by order dated 22.05.2023, admitted ITA No.216/2023 to consider the following substantial questions of law: "1. Whether the Tribunal was right in law holding that order passed under section 263 of the Act was not having a Document Identification Number (DIN) even when the order was uploaded t....
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....014. 5.1 Subsequently, the Principal Commissioner of Income Tax invoked the revisional jurisdiction under Section 263 of the Act. In exercise of the said power, and after affording an opportunity of hearing to the Assessee, the Revisional Authority, by order dated 15.03.2021, set aside the assessment order on the ground that it was erroneous and prejudicial to the interests of the Revenue, and directed the Assessing Officer to re-do the assessment after providing adequate opportunity to the Assessee. 5.2 Aggrieved by the revisional order, the Assessee preferred an appeal before the Tribunal. By the impugned order dated 06.12.2022, the Tribunal set aside the order passed under Section 263 of the Act, holding that the same was in contravention of Circular No.19/2019 dated 14.08.2019. Aggrieved thereby, the Revenue has preferred the present appeal. SUBMISSIONS OF SRI K. ARVIND KAMATH, LEARNED ADDITIONAL SOLICITOR GENERAL OF INDIA (ASG), APPEARING FOR THE APPELLANTS-REVENUE: IN ITA NO.55/2024 6. Learned ASG submits that the order of the DRP was uploaded in the Income Tax Business Application (ITBA) for generation of a Document Identification Number (DIN). At that stage, ....
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.... notifications / communications permit communication of the DIN through a separate communication/letter. 7.2 It is submitted that the expression "body of such communication" occurring in Circular No.19/2019 cannot be construed as the body of the order itself; rather, it may refer to the body of any communication. In the present case, such communication is the intimation letter dated 15.03.2021. 7.3 Learned ASG further submits that the Finance Act, 2026 has inserted Section 292BA. In view of the said amendment, any mistake, defect, or omission in quoting the computer-generated DIN is treated as a curable defect, and an order issued without a DIN would not stand invalidated. SUBMISSIONS OF SRI T. SURYANARAYANA, LEARNED SENIOR COUNSEL APPEARING FOR THE RESPONDENT-ASSESSEE IN ITA NO.55/2024: 8. Learned Senior Counsel submits that the order of the DRP was communicated without a DIN. The subsequent generation of a DIN and communication of the same, according to him, does not constitute compliance with Circular No.19/2019. It is submitted that if any order is to be communicated without a DIN, prior written approval of the Chief Commissioner or Director General of Income Tax....
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....ing a DIN, as claimed by the Revenue. According to the respondent, only one order under Section 263 of the Act, which did not contain a DIN, was received. 9.2 In the above circumstances, learned counsel submits that the findings recorded by the Tribunal are justified. It is also submitted that mentioning the DIN in the order is mandatory. ANALYSIS 10. We have considered the submissions made by learned counsels appearing for the respective parties. 11. In both cases, it is undisputed that the order of the DRP and the order passed under Section 263 of the Act were initially communicated to the Assessees without a DIN. The DINs were generated after the orders were uploaded in the system. The DINs generated in respect of these orders were thereafter communicated through separate intimation letters, which themselves bear separate DINs. 12. In ITA No.55/2024, the intimation letter dated 30.06.2022 communicates the DIN pertaining to the order dated 29.06.2022 passed under Section 144C (5) of the Act. Similarly, in ITA No.216/2023, the intimation letter dated 15.03.2021 communicates the DIN pertaining to the order dated 15.03.2021 passed under Section 263 of the Act. The sai....
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.... Tribunal does not contain any such allegation. Further, the submission now advanced before this Court also does not merit acceptance for additional reasons. We have perused Form No.36, the grounds of appeal, and the revised grounds of appeal. Form No.36 and the accompanying documents are signed by the learned counsel appearing for the Assessee before the Tribunal. The page numbering in Form No.36 and its enclosures appears continuous and uniform, without any variation in handwriting. Moreover, the Tribunal record, as evidenced by the seal affixed thereon, appears to have been completely scanned. In the absence of any prima facie material in support of the allegation, we do not find it necessary to examine the said unsubstantiated contention any further. 19. The issue that now remains for consideration in both the appeals is: "Whether communication of an order without a DIN, followed by subsequent generation and communication of the DIN along with the order containing the manually entered DIN, constitutes sufficient compliance with Circular No.19/2019 dated 14.08.2019?" 20. Mentioning of a DIN was introduced in all communications issued by the Income Tax authorities ....
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.... communication". 24. The requirement of mentioning a DIN applies to the communications referred to in paragraph 2, namely, assessment proceedings, appeals, orders, whether statutory or otherwise, exemptions, enquiries, investigations, verification of information, penalty proceedings, prosecution, rectification, approvals, etc. 25. The affidavit filed by the Deputy Commissioner of Income Tax explains the procedure relating to generation of DINs. It is stated that the Income Tax Department utilizes the Income Tax Business Application (ITBA) portal for carrying out official functions and that officers are provided with ITBA login credentials. It is further stated that different modules are available in the ITBA system for carrying out various functions assigned to officers depending upon their roles and responsibilities. 26. The affidavit further explains that, for passing assessment orders or issuing notices, two options are available to the Assessing Officer, namely, generation through the ITBA system itself or uploading of a manually prepared order. Where assessment orders are passed through the ITBA portal, a DIN is automatically generated, the document is digitally signe....
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....d onto the ITBA portal, whereas in another case it is on the next date. 31. In the light of the above material, this Court finds no reason to disregard the procedure explained in the affidavit. Moreover, where any ambiguity exists regarding compliance, the purpose underlying the requirement must also be borne in mind. The interpretation adopted should advance the object sought to be achieved and not defeat it. 32. If a purposive and objective interpretation is accorded to Circular No.19/2019, read in conjunction with the procedure explained in the affidavit, the sequence that emerges is as follows: (i) The document is uploaded without a DIN for the purpose of generating a DIN; (ii) During that process, the document gets communicated to the Assessee; (iii) Immediately upon generation of the DIN, a separate communication mentioning the DIN assigned to that document, bearing a DIN for the communication itself, along with the order containing the manually entered DIN, is also communicated. 33. The overarching purpose discernible from the Circular is the maintenance of an audit trail of departmental communications. In the facts of the present cases, w....
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....ared order along with a letter for generation of a DIN. After the DIN is generated and quoted in the physical copy, the document can be uploaded. In such cases, an intimation letter containing the DIN of the document as well as the DIN of the intimation letter itself is required to be shared through the e-Filing portal for authentication purposes, enabling the Assessee to verify the authenticity of the letter, notice, or order issued by the Income Tax authorities. 38. In the light of Instruction No.5, Circular No.19/2019 cannot be read in isolation. As observed hereinabove, when a technology-driven procedure is introduced, errors and glitches are not uncommon. Any deficiency attributable to the technological process cannot be permitted to defeat the very object sought to be achieved. What is required to be examined is whether there has been substantial compliance in furtherance of the object underlying the Circular No.19/2019. 39. The affidavit placed on record by the AO, explaining the process/procedure involved in generating the DIN, is in conformity with Circular No.19/2019 and Instruction No.5. Accordingly, we find justification, legality, and substance in the contents of....
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....DIN) in communications issued by the Income Tax Department, as contemplated under Circular No.19/2019 dated 14.08.2019, is mandatory. (ii) Where the DIN is subsequently communicated through an intimation and such intimation bears its own DIN while also referring to the DIN of the enclosed order, the order cannot be held to be invalid merely on the ground that the DIN was not originally reflected in the communication. An order would attract invalidity under Circular No.19/2019 only where no DIN is generated or communicated at all. (iii) The requirement of obtaining prior approval from the Chief Commissioner or the Director General of Income Tax for issuance of a communication without a DIN arises only in cases where the communication is made manually and not through the electronic mode. (iv) The object of Circular No.19/2019 is to maintain an audit trail and authenticity of departmental communications. Where the procedure adopted sufficiently establishes the identity and traceability of the communication, the object of the Circular stands achieved. (v) A mere error in manually mentioning the DIN in the order would not invalidate the order, provide....