TMI Blog2024 (1) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular and, therefore, the assessment orders without quoting DIN ought to be treated as invalid and deemed never to have been issued - The consequences of contravention of the Circular set out above, therefore, ought to be given full effect to. The object of the said Circular is clear and laudatory and intended to ensure that proper trail of all assessment and other orders are maintained and further that any deviation therefrom can only be undertaken after prior written approval of the higher authorities under the Act. Delay of 581 days in filing of the instant appeal against PCIT s revision order is condoned since falling under Covid-2019 pandemic outbreak period between 15.03.2020 to 28.02.2022 as per hon'ble apex court s directi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e procedure prescribed for allotment of DIN number post facto the order in question is passed. Faced with the situation, we quote hon'ble jurisdictional high court s recent decision in Ashok Commercial Enterprises Vs. ACIT [2023] 154 taxmann.com 144 (Bom) settling the issue in assessee s favour and against the department as under : 18 Whether the impugned assessment order dated 28 th September 2021 is invalid on account of it being issued without a DIN? (a) The CBDT, in exercise of powers under Section 119(1) of the Act, has issued a Circular No.19/2019 dated 14 th August 2019 providing that no communication shall be issued by any Income Tax Authority inter alia relating to assessment orders, statutory or otherwise, inqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctification, approval etc. to the assessee or any other person, on or after the 1 st day of October, 2019 unless a computer- generated Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication. 3. In exceptional circumstances such as,- (i) when there are technical difficulties in generating/allotting/ quoting the DIN and issuance of communication electronically; or (ii) when communication regarding enquiry, verification etc. is required to be issued by an income-tax authority, who is outside the office, for discharging his official duties: or (iii) when due to delay in PAN migration. PAN is lying with non-jurisdictional Assessing Officer; or (iv) when PAN of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ara 3- (i), (ii) or (iii) above shall have to be regularised within 15 working days of its issuance, by. i. uploading the manual communication on the System. ii. compulsorily generating the DIN on the System; iii. communicating the DIN so generated to the assessee/any other person as per electronically generated pro-forma available on the System. 6. An intimation of issuance of manual communication for the reasons mentioned in para 3(v) shall be sent to the Principal Director General of Income-tax (Systems) within seven days from the date of its issuance. 7. Further, in all pending assessment proceedings, where notices were issued manually, prior to issuance of this Circular, the Income-tax authorities shall id ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lhi High Court has held that an order passed in contravention of the said Circular is void, bad in law and of no legal effect. Paragraphs 16 to 17.1, 18 and 19 read as under: 16. The final assessment order was passed by the Assessing Officer (AO) on 15.10.2019, under Section 147/144(C) (13/143(3) of the Act. Concededly, the final assessment order does not bear a DIN. There is nothing on record to show that the appellant/revenue took steps to demonstrate before the Tribunal that there were exceptional circumstances, as referred to in paragraph 3 of the 2019 Circular, which would sustain the communication of the final assessment order manually, albeit, without DIN. 16.1. Given this situation, clearly paragraph 4 of the 2019 Circul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ph 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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