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TMI Blog2024 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... , to verify the sales turnover since higher turnover reported in Service Tax Return as compared to Income Tax Return and also to verify the earning of exempt income. The Assessing Officer issued show cause notices u/s. 142(1) on 18.06.2019, 30.08.2019, 18.10.2019 and considered the submissions of the assessee and accepted the income returned by the assessee by passing regular assessment order u/s. 143(3) of the Act dated 22.11.2019. 2.2. On perusal of the above assessment order by the Ld. PCIT, the same is found to be erroneous in so far as it is prejudicial to the interest of Revenue on the wrong disallowance u/s. 14A and consequently normal provision of Income Tax could be applicable and not that of MAT. Therefore a show cause notice dated 02.03.2022 was issued to the assessee calling for his explanation, by fixing the case for hearing on 08.03.2022. It is stated in the show cause notice that the above Revision proceedings is getting time bar on 31.03.222, hence the assessee was required to comply with the SCN by the given date and time, failing which Revision proceedings shall be finalized on the basis of the material available on record and merits of the case and no adjournmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder u/s 263 of the Income-tax Act, 1961 was also passed and uploaded on ITBA (Income-tax Business Application). A DIN (Document Identification Number) bearing no. ITBA/REV/M/REV5/2021- 22/1042203098(1) was generated. The generated DIN alongwith order u/s 263 of the Income-tax Act, 1961 as Annexure was communicated to the assessee. The same was visible to the assessee on its E- filing portal. The DIN generated intimation letter alongwith order was also duly issued to the assessee through speed post bearing no. EG390393920IN on 31.03.2022. 5. In this connection, I am directed to enclose herewith copy of intimation letter for hearing notice, copy of intimation letter for order, copy of speed post register vide which notice and order were dispatched to the assessee." 4.1. Thus Ld. CIT-DR submitted that though the show cause notice was not carrying the DIN, it was generated on 02.03.2022 itself and communicated to the assessee physically by Speed Post on 03.03.222. Further the assessee in reply to the show cause uploaded in the Income Tax Business Application (ITBA) has clearly mentioned the above DIN. Similarly, the assessee was communicated on 31.03.2022, the DIN relating to the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such communication. 2. In order to prevent such instances and to maintain proper audit trail of all communication, the Board in exercise of power under section 119 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), has decided that no communication shall be issued by any income-tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation. verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person, on or after the 1st 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 assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were found to have been issued manually without maintaining proper audit trail of such communication. Therefore invoking powers available u/s. 119 of the Act, the CBDT instructed the Assessing Authorities to generate Document Identification Number in every communication and duly quoted in the body of such communication with effect from 01.10.2019. In Para 3 of this Circular, few exceptional circumstances wherein DIN could not be generated, in such cases manual communication may be issued after prior written approval of the Chief Commissioner/Director General of Income-tax. For this purpose a specific format is also given in Para 3 of this circular. It is thereafter in Para 4 of the Circular makes it very clear any communication which is not inconformity with Para 2 & 3 above, shall be treated as invalid and the same shall be deemed to have never been issued. Further the Circular also given guidelines that manual communication shall have to be regularized within 15 working days of its issuance and the same shall be sent to the Principal Director General of Income-tax (Systems) within seven days from the date of its issuance. Thus the above CBDT Circular is self-contained Code by its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is appropriate to quote herein the well settled law that Circular issued by CBDT in exercise of its power u/s. 119 of the Act are binding on the Revenue as held by the Hon'ble Supreme Court Judgment in the case of K.P. Varghese Vs. ITO reported in [1981] 4 SCC 173 wherein it is held as follows: "....12. But the construction which is commending itself to us does not rest merely on the principle of contemporanea expositio. The two circulars of the Central Board of Direct Taxes to which we have just referred are legally binding on the Revenue and this binding character attaches to the two circulars even if they be found not in accordance with the correct interpretation of sub-section (2) and they depart or deviate from such construction. It is now well settled as a result of two decisions of this Court, one in Navnitlal C. Javeri v. K.K. Sen [AIR 1965 SC 1375 : (1965) 1 SCR 909: 56 ITR 198] and the other in Ellerman Lines Ltd. v. CIT [(1979) 4 SCC 565] that circulars issued by the Central Board of Direct Taxes under Section 119 of the Act are binding on all officers and persons employed in the execution of the Act even if they deviate from the provisions of the Act." 7.1. The Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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