ITAT Rules Orders Issued Without DIN as Invalid and Non-Existent

The Income Tax Appellate Tribunal (ITAT) has ruled that an order passed without a Document Identification Number (DIN) is invalid and will be considered as if it was never issued. This decision was made in the case of Rhone Associates Pvt. Ltd. vs. ACIT.

In this case, the appellant challenged an order dated 16.12.2022 for the assessment year 2012-13. The appellant's counsel argued that the assessment order was null and void because it did not include a mandatory DIN, as required by CBDT Circular No.19/2019 dated 14th August 2019. The absence of a DIN rendered the assumed jurisdiction invalid.

Based on this argument and in line with previous Delhi High Court decisions and CBDT Circular No. 19/2019, the ITAT concluded that the assessment order was invalid and should be considered as if it was never issued. Therefore, the ITAT quashed the assessment order.

This issue regarding the generation and communication of a simultaneous DIN number was also addressed in the case of Abhimanyu Chaturvedi vs DCIT (ITA Nos.2486, 2487, and 2488/Del/2022), where the Co-ordinate Bench of the Tribunal considered it.

The Income Tax Appellate Tribunal (ITAT) has declared that an order issued without a Document Identification Number (DIN) is invalid and should be considered as if it was never issued. This ruling was made in the case of Rhone Associates Pvt. Ltd. vs. ACIT.

The CBDT Circular No. 19/2019 mandates that any communication issued under specified exceptions must mention the reasons for manual issuance without a DIN and include the approval of the Chief Commissioner/Director General of Income Tax. The Circular defines "communication" to encompass notices, orders, summons, letters, and any correspondence.

In the context of assessment orders, the assessment order must specify if it was carried out manually when notices were initially issued electronically through the ITBA Portal. This ensures compliance with the Circular's requirements regarding manually issued communications.

Furthermore, instructions from October 25, 2019, state that if a document is created outside the ITBA system and uploaded manually, a DIN must be generated before uploading, and it should be physically signed on the document before uploading. This means that for an assessment to be considered "made" under sections 153A/143(3) of the Income Tax Act, the DIN should be quoted on the order before signing. Without generating and quoting the DIN before signing, the order is invalid.

In the case at hand, it was established that the DIN was not generated before uploading the document in ITBA and was not quoted before it was signed. Subsequently generated DIN and intimation sent to the assessee hold no significance for the assessment and demand.

In summary, the simultaneous issue of the DIN number without mentioning it in the communication itself is deemed insignificant. The ITAT allowed the legal/additional ground raised by the assessee, rendering the other grounds academic and unnecessary for adjudication.

Also Read: Claiming Refund of Input Tax Credit (ITC) Under GST: A Detailed Guide 2023