Facts of the Case

The assessee Anuj Kumar Singh filed his return of income for the relevant Assessment Year under the Income-tax Act, 1961. The case was selected for scrutiny and the Assessing Officer (AO) completed the assessment by passing an order determining the taxable income of the assessee.

The assessee challenged the assessment order before the Commissioner of Income Tax (Appeals) [CIT(A)], who confirmed the action of the Assessing Officer.

Aggrieved by the decision of the CIT(A), the assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench.

During the proceedings before the Tribunal, the assessee raised a legal ground challenging the validity of the assessment order, contending that the order was issued without mentioning the mandatory Document Identification Number (DIN) as required under CBDT Circular No. 19/2019. 

Issues Involved

  1. Whether an assessment order issued without mentioning a Document Identification Number (DIN) is valid under the law.
  2. Whether the absence of DIN renders the order invalid and non-est in law.
  3. Whether the assessment order passed by the Assessing Officer can be sustained despite violation of CBDT Circular No. 19/2019. 

Petitioner’s Arguments

The assessee contended that:

  • As per CBDT Circular No. 19/2019, every communication issued by the Income Tax Department must contain a Document Identification Number (DIN).
  • The assessment order issued by the Assessing Officer did not contain a DIN, which is mandatory.
  • The circular clearly provides that any communication issued without DIN shall be treated as invalid and deemed to have never been issued, except in certain specified circumstances.
  • Since the order lacked DIN and did not fall within any exception, the entire assessment order was illegal and liable to be quashed. 

Respondent’s Arguments

The Revenue authorities argued that:

  • The assessment proceedings were conducted in accordance with the Income-tax Act, 1961.
  • The absence of DIN should not automatically invalidate the assessment order if the proceedings were otherwise valid.
  • Therefore, the assessment order should be upheld. 

Court Order / Findings

The Income Tax Appellate Tribunal (ITAT), Delhi Bench examined the assessment order and the provisions relating to DIN under CBDT Circular No. 19/2019.

The Tribunal observed that:

  • The CBDT circular makes it mandatory that every communication issued by the Income Tax Department must contain a DIN.
  • The circular further provides that any communication issued without DIN shall be invalid and treated as non-est in law, unless it falls within the specified exceptional circumstances.

The Tribunal noted that the assessment order issued in the present case did not contain a DIN, and the Revenue failed to demonstrate that the case fell within any of the permitted exceptions.

Accordingly, the Tribunal held that the assessment order was invalid and unsustainable in law and granted relief to the assessee.

Important Clarification

The Tribunal clarified that:

  • The requirement of DIN is mandatory and not merely procedural.
  • The purpose of the DIN system is to ensure transparency, accountability, and proper tracking of communications issued by the Income Tax Department.
  • Any order issued without DIN, unless covered under specific exceptions, cannot be treated as a valid order.

Link to download the order – https://itat.gov.in/public/files/upload/1704104824-ANUJ%20KUMAR%20SINGH,%201434-DEL-2023.PDF

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.