Facts of the Case

The present appeal was filed by the Revenue against the order dated 16.09.2022 passed by the Income Tax Appellate Tribunal concerning Assessment Year 2011–12.

The Assessing Officer passed the final assessment order dated 15.10.2019 under Sections 147, 144C(13), and 143(3) of the Income Tax Act, 1961. However, the said order did not contain a Document Identification Number (DIN) as mandated by CBDT Circular No. 19/2019 dated 14.08.2019.

The Tribunal allowed the appeal of the assessee holding that the absence of DIN renders the assessment order invalid. The Revenue challenged this finding before the Delhi High Court.

Issues Involved

  1. Whether an assessment order issued without a DIN is invalid in law under CBDT Circular No. 19/2019?
  2. Whether failure to generate DIN can be cured under Section 292B of the Income Tax Act, 1961?
  3. Whether CBDT Circulars are binding on the Income Tax Authorities?

Petitioner’s Arguments (Revenue)

  • The failure to generate DIN was a procedural mistake or omission, which should not invalidate the assessment order.
  • Such defect can be cured by invoking Section 292B of the Act.
  • The CBDT Circular applies only to communications and not to substantive assessment orders.
  • Reliance was placed on judicial precedent to argue that procedural defects should not defeat substantive justice.

Respondent’s Arguments (Assessee)

  • CBDT Circular No. 19/2019 is binding on the Revenue authorities.
  • The absence of DIN is a jurisdictional defect, not a procedural irregularity.
  • Section 292B cannot cure such fundamental illegality.
  • Reliance was placed on Supreme Court and High Court judgments affirming binding nature of CBDT circulars and invalidity of jurisdictional defects.

Court’s Findings / Order

  • The Court held that CBDT Circular No. 19/2019 mandates that every communication must contain a DIN, failing which it shall be treated as invalid and deemed never issued.
  • The Revenue failed to demonstrate that the case fell under exceptional circumstances permitting manual issuance without DIN.
  • The Court rejected the contention that the defect could be cured under Section 292B.
  • It was held that circulars issued under Section 119 are binding on the Revenue authorities.
  • Consequently, the assessment order without DIN was treated as non-est in law.
  • No substantial question of law arose; hence, the appeal of the Revenue was dismissed.

 Important Clarification

  • Any communication issued by the Income Tax Department without DIN (post 01.10.2019) is invalid unless it strictly falls within exceptions provided in the Circular.
  • Even in exceptional cases, prior approval and subsequent regularization are mandatory.
  • Section 292B cannot cure jurisdictional defects, especially when the Circular explicitly declares such communication as invalid.
  • DIN requirement ensures transparency, accountability, and audit trail in tax administration.

 Sections Involved

  • Section 147 – Income escaping assessment
  • Section 143(3) – Assessment
  • Section 144C – Dispute Resolution Panel
  • Section 292B – Return of income, etc., not to be invalid on certain grounds
  • Section 260A – Appeal to High Court
  • Section 119 – CBDT powers (relevant for binding circulars)


Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/59020032023ITA1632023_120140.pdf 

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