Introduction- Explore the recent ITAT Delhi verdict in the matter involving Smt. Sharda Devi Bajaj versus DCIT, wherein the assessment order underwent scrutiny due to the absence of the Document Identification Number (DIN/DN).
The piece unravels the complexities of the case, emphasizing the significance of adhering to CBDT Circular No. 19/2019 issued on 14.08.2019 and its implications on the legitimacy of the assessment order.
Matter of the Case
- A search operation in the Bajaj Group directed to the assessment of income for distinct taxpayers.
- The challenge that emerged is related to the absence of a Document Identification Number (DIN/DN) in the assessment order.
CBDT Circular No. 19/2019 and Legal Mandate:
- CBDT Circular No. 19/2019 on 14.08.2019 mandates the generation and quoting of DIN in communications and orders.
- Exceptions for manual issuance are allowed under certain circumstances, with recorded reasons and prior approval.
CBDT Assessment Order Deficiency:
- The assessment order, for the identical case, does not pose the essential DIN, raising problems about its validity.
- CBDT Circular explicitly considers communications without DIN as invalid.
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DIN For Legal Precedents:
- Referencing legal precedents, the article emphasizes that merely generating a Document Identification Number (DIN) at a later stage is insufficient.
- Recent rulings by the Hon’ble Courts stress the imperative need for absolute compliance with DIN prerequisites.
Dated 17.9.2019 For Communication:
- The Revenue laid on the communication for the start of the utility for the System-generated Document (Intimation Letter) containing DIN.
- It specifies that the same communication is related to the exceptional cases under Circular Para 3 and does not apply in this case.
The Ruling of the ITAT and Additional Grounds:
- ITAT permits the start of the additional basis as per the CBDT circular stressing its foundation in current facts.
- The ruling aligns with the principles maintained via distinct coordinate Benches and jurisdictional High Courts.
Conclusions of the ITAT Ruling:
- The ITAT ruling sets aside the assessment orders, acknowledging the absence of DIN/DN as a fatal flaw.
- The decision repeats the significance of compliance with CBDT Circular No. 19/2019 for the validity of assessment orders.
Closure-
The recent decision by ITAT Delhi in the case of Smt. Sharda Devi Bajaj vs. DCIT highlights the vital importance of following procedural guidelines, especially as outlined in CBDT Circular No. 19/2019.
The absence of a Document Identification Number (DIN/DN) in the assessment order had serious repercussions, resulting in the cancellation of the order. This case emphasizes the courts’ dedication to maintaining procedural standards and emphasizing the legal ramifications of not meeting essential criteria, thereby ensuring a fair and equitable taxation system.
| Case Title | Smt. Sharda Devi Bajaj versus DCIT |
| ITAT No. | 3006/DEL/2022 [Assessment Year: 2015-16] |
| Date | 15.11.2023 |
| Assessee By | Sh. Ved Jain, Adv. & Sh. Aman Garg, Adv. |
| Counsel For Respondent | Sh. H.K. Choudhary, CIT-DR |
| Delhi ITAT | Read Order |