TMI Blog2023 (5) TMI 835X X X X Extracts X X X X X X X X Extracts X X X X ..... . As stated therein that in such exceptional circumstances, the communication may be issued manually, but shall contending a statement referring to the exceptional circumstances and also the fact that it was so issued without DIN with the approval of the Chief Commissioner/Director General of Income Tax. There are two documents before us. One is the order dated 23/03/2020 passed under section 263 of the Act and the other is a communication dated 02/06/2020. The communication dated 02/06/2020 states that the order under section 263 of the Act dated 23/03/2020 was having a particular DIN. But the question is whether such a later reference will relate back to the date of order i.e., 23/03/2020 passed u/s 263 and validates the same. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, shall not take any affect. Assessee appeal allowed. - ITA No. 423/Hyd/2020 - - - Dated:- 28-4-2023 - Shri Rama Kanta Panda, Accountant Member And Shri K.Narasimha Chary, Judicial Member For the Assessee : Shri K.A. Sai Prasad, AR For the Revenue : Shri Rajendra Kumar, CIT-DR ORDER PER K. NARASIMHA CHARY, JM: Aggrieved by the order dated 02/06/2020 passed by the learned Principal Commissioner of Income Tax-Guntur, ( Ld. PCIT ) under section 263 of the Income Tax Act, 1961 (for short the Act ) in the case of Venkata Surya Prakasa Rao Sidda ( the assessee ) for the assessment year 2015-16, assessee preferred this appeal. 2. Legal existence of the order dated 23/03/2020 by learned PCIT under section 263 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it IS mandated to maintain proper audit trail of all communication to the assessee without quoting a computer generated DIN on or after 01/10/2019. He also placed reliance on the decision of Hon'ble Delhi High Court in the case of Brandix Mauritius Holdings Ltd (supra). 5. Per contra, learned DR submitted that it could be seen from the impugned order that the order under section 263 of the Act dated 23/03/2020 was having document number [DIN Document No. ITBA/REV/M/REV5/2020-21 /1027201902(1)] and, therefore, there is no violation of the circular. He further submitted thatwhen the order under section 263 of the Act is otherwise legal and valid, merely because of the discrepancy in respect of the DIN, a meritorious case cannot be th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be issued manually, but shall contending a statement referring to the exceptional circumstances and also the fact that it was so issued without DIN with the approval of the Chief Commissioner/Director General of Income Tax. Vide paragraph 5, it is contemplated that when the communication is issued without the DIN, under exceptional circumstances mentioned in paragraph 3(i) to paragraph 3(iii), it has to be regularised within fifteen days, and in case of paragraph 3(v), manual communication for the reason thereof to be sent to Principal Director General of Income Tax (Systems) within seven days of such issuance of the communication. Paragraph 4, in unequivocal terms, mentions that any communication which is not in conformity with paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue that DIN [ITBA /REV/M/REV5/2020-21 /1027201902(1)] was generated on 23/03/2020 and the document dated 02/06/2020 is not specific on this aspect, we are of the considered opinion that it is imperative for us to look at the circumstances under which the DIN was generated separately. 10. Neither the order under section 263 of the Act nor the communication dated 02/06/2020 spell out the reasons for not either generating the DIN or quoting the same in the order dated 23/03/2020. Circular categorically mentions that subsequent to 01/10/2019, the computer generated DIN not only be allotted but be duly quoted in the body of the communication itself. In the communication dated 23/03/2020 any reference to DIN is conspicuously absent. To meet th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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