Facts of the Case

The assessee filed appeals against the orders of the Commissioner of Income Tax (Appeals), Kanpur-4 arising from assessment orders passed by the Assessing Officer under section 143(3) read with section 153A of the Income Tax Act, 1961.

During the appellate proceedings before the ITAT, the assessee raised an additional legal ground contending that the assessment order dated 30.12.2019 was void and non-est because it was issued without quoting the Document Identification Number (DIN) as required under CBDT Circular No. 19/2019.

The assessee argued that as per the circular, every communication issued by the Income Tax Department after 15 October 2019 must compulsorily contain a computer-generated DIN in the body of the communication, failing which such communication shall be treated as invalid and deemed to have never been issued.

Issues Involved

  1. Whether an assessment order not bearing DIN in its body is invalid in view of CBDT Circular No. 19/2019.
  2. Whether the subsequent generation of DIN and communication through an intimation letter can cure the defect of non-mentioning of DIN in the assessment order.
  3. Whether non-mentioning of DIN is merely a procedural defect or renders the assessment order void ab initio. 

Petitioner’s Arguments

  • CBDT Circular No. 19/2019 mandates that every communication including orders, notices, summons and letters issued by the Income Tax Department must contain a DIN quoted in the body of the communication.
  • Any communication not complying with the circular shall be treated as invalid and deemed never to have been issued.
  • The assessment order in the present case did not contain DIN on its face, which directly violates the CBDT circular.
  • The defect cannot be cured by Section 292B of the Income Tax Act, since the circular itself provides the consequence of invalidity.
  • Reliance was placed on the decision of the Delhi High Court in Brandix Mauritius Holdings Ltd. (149 taxmann.com 238), where it was held that non-mentioning of DIN renders the communication invalid.

Respondent’s Arguments

  • The requirement of DIN arises from CBDT Circular No. 19/2019 issued under Section 119, and it does not override the statutory provisions of the Act.
  • The circular was introduced primarily to ensure proper audit trail and avoid manual communication.
  • In the present case, DIN was generated later and communicated through an intimation letter, which should be treated as sufficient compliance.
  • Non-mentioning of DIN on the assessment order is only a procedural lapse, and unless prejudice is caused to the assessee, the order cannot be declared void.
  • The Revenue relied on several judicial precedents including:
    • Prakash Lal Khandelwal vs CIT
    • Chanderbhan vs Union of India
    • Texmo Precision Castings UK Ltd. vs CIT 

Court Findings

  • CBDT Circular No. 19/2019 clearly mandates that every communication issued by the Income Tax Department must contain a DIN quoted in the body of the communication.
  • The circular further provides that any communication issued without DIN shall be treated as invalid and deemed to have never been issued.
  • The term “communication” includes notices, orders, summons, letters and correspondence, therefore an assessment order itself is a communication.
  • In the present case, the assessment order did not bear a DIN on its face, and no exceptional circumstances mentioned in the circular for manual issuance were recorded.
  • The subsequent generation of DIN and issuance of an intimation letter cannot validate an order which was originally issued without DIN.
  • CBDT circulars issued under Section 119 are binding on the Income Tax authorities, as held by the Supreme Court in several cases including UCO Bank vs CIT and Ellerman Lines Ltd. vs CIT.
  • Therefore, non-compliance with the circular vitiates the assessment order itself. 

Court Order

  • The assessment orders issued without quoting DIN are invalid and deemed to have never been issued in terms of CBDT Circular No. 19/2019.
  • Since the impugned assessment orders did not contain DIN in their body, they lack legal validity.
  • Accordingly, the assessment orders were held to be void and non-est. 

Important Clarification

  • The DIN must appear on the face of the communication itself, particularly on the assessment order.
  • Merely issuing an intimation letter containing DIN after the order is passed does not cure the defect.
  • Once the circular prescribes the consequence of invalidity for non-compliance, the defect cannot be treated as a minor procedural lapse.

Link to download the order - https://itat.gov.in/public/files/upload/1704194490-Ajay%20Kumar.pdf 

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