TMI Blog2023 (10) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... gated or verified for this purpose, therefore such being a bald legal ground requiring no examination of facts a fresh, in our considered view deserves admission in the light of ratio laid down in 'CIT vs. National Thermal Power Company Ltd.' [ 1996 (12) TMI 7 - SUPREME COURT] and 'Gedore Tools Pvt Ltd. vs. CIT' [ 1999 (2) TMI 55 - DELHI HIGH COURT] . After due consideration of assessee's plea and submission, we are satisfied that, omission to raise legal ground while filing present appeals were neither wilful nor unreasonable, for the reason we deem it fit to admit the same in the light of judicial precedents laid in 'Jaora Sugar Mills Pvt. Ltd v CIT' [ 1979 (8) TMI 34 - MADHYA PRADESH HIGH COURT] , and 'CIT v Western Rolling Mills Pvt. Ltd.' [ 1984 (9) TMI 19 - BOMBAY HIGH COURT] and 'Jute Corporation of India Ltd. v CIT' [ 1990 (9) TMI 6 - SUPREME COURT] and 'Ahmedabad Electricity Co. Ltd. v CIT' [ 1992 (4) TMI 29 - BOMBAY HIGH COURT] ergo same stands admitted. Validity of orders issued without DIN - We find this issue is no-more res-integra by the ratio in 'Ashok Commercial Enterprises vs. ACIT' [ 2023 (9) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g DIN in the body. Whereas in remaining appeals i.e., in Sr No 12 to 19 neither the assessments orders nor the appellate order bear computer-generated DIN in the body thereof. Since these orders were issued without complying with Circular No.19/2019 dt. 14/08/2019 issued by the Central Board of Direct Taxes ['CBDT or Board' hereinafter], with the leave of this Tribunal u/r 11 of ITAT-Rules, 1963 an oral legal ground challenging validity of these impugned orders is raised and prayed for admission for adjudication in the light of settled legal position. 4. Per contra, Ld. DRs without objecting admission of legal ground have submitted that, the impugned orders though initially were issued without quoting DIN therein, however in compliance with CBDT Circular (supra) separate communication intimating computer-generated DIN in each of these cases were issued to the respective assessee. It is also submitted that, invariably in all these cases DIN is intimated separately either immediately on same day or next working day or within 15 days of their manual issuance. The Ld. DRs also have appealed that, since effective compliance with aforestated circular (supra) is made by issue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, rectification, approval etc. 8. Albeit para 2 of Circular mandates for DIN compliance, para 3 thereof provides five exceptional circumstances wherefore manual communication is permitted without initially complying with DIN requirement. However, such issuance of manual communication mandates the tax authorities to record reasons therefore and to obtain prior approval from CCIT/DGIT. In terms of para-5 it is also subjected for regularisation of DIN compliance within a period of 15 working days of such manual issuance. Here it is worthy to note that, any communication made not in conformity with or in violation of Para-2 save otherwise provided in Para 3 5 thereof, renders the communication as invalid and shall be deemed to have never been issued. 9. Not well, leave granted by para 3 comes with an obligated rider that, communication must state therein the reason for issue of such DIN less communication in terms of para 3(i) to 3(v) [as applicable] alongwith the Number date of obtaining written approval of the Chief Commissioner / Director General of Income-Tax in a specified format. That is to say, the DIN less communication if issued without incorporating therein (1) app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herwise, inquiries, approvals, etc. to an assessee or any other person on or after 1st October 2019 unless a computer generated DIN has been allotted and is quoted in the body of such communication. The Circular reads as under : CIRCULAR NO.19/2019 (F. NO. 225/95/2019-ITA.II], DATED 14-8-2019. . . . . . .. Paragraph 3 of the Circular sets out five exceptional circumstances where the aforementioned mandatory requirement may not be adhered to, but requires that if an order/communication is to be issued without a DIN, it can be done only after recording reasons in writing in the file and with the prior written approval of the Chief Commissioner/Director General of Income Tax. Further, paragraph 3 requires that if such exceptional circumstances are claimed, the orders/communication issued without a DIN must state this fact in a specific format set out in paragraph 3 of the Circular. Paragraph 4 of the Circular provides that any order/ communication which is not in conformity with paragraphs 2 and 3 of the Circular shall be treated as invalid and shall be deemed to have never been issued. The contents of the Circular have been re-iterated in a Press Release dated 14th Augus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of paragraph 4 of the 2019 Circular. (c) During the course of hearing, Mr. Suresh Kumar produced an intimation letter dated 13th October 2021 stating that the order dated 28th September 2021 under Section 153C of the Act has a DIN, which is set out therein. Even if this is held to be in compliance with paragraph 5 of the Circular, which deals with regularization of communications without DIN, this can only seek to regularize the failure to generate a DIN, but yet the requirements of paragraph 3 of the Circular will still remain contravened and consequently, the order dated 28th September 2021 ought to be treated as invalid and never issued; (d) The said Circular also applies to the satisfaction note dated 13th July 2021 issued by respondent no.1. The satisfaction note will fall within the scope of paragraph 2 of the Circular as a communication of the specified type issued to any person. In the case of the satisfaction note no regularization dated 13th October 2021 has been issued; (e) In view of the binding nature of Circular issued under Section 119 of the Act, and the peculiar facts and circumstances of the case, the consequences of contravention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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