ITAT Delhi Quashes Assessment Order Passed without DIN: Emphasizing Compliance with CBDT Circular 19/2019


By CA Milind Wadhwani

Executive Summary

In a significant development, the Income Tax Appellate Tribunal (ITAT) in Delhi has recently delivered a noteworthy judgment in the case of Pratap Singh Yadav, wherein it quashed an assessment order that was passed without a Document Identification Number (DIN) in violation of CBDT Circular 19/2019.

The ITAT firmly rejected the contention put forth by the Revenue that the DIN was generated later and subsequently communicated to the assessee. Citing the CBDT circular, the tribunal held that if any communication is issued without a DIN, the fact and reason for the same is to be stated in the body of the order.

The crux of the matter lies in the non-compliance of the assessment order with the aforementioned circular, which not only lacked a DIN number but also failed to provide the required justification as per the conditions specified in paragraph 3 of the circular.

The ITAT’s decision emphasizes the significance of adhering to the provisions outlined in CBDT Circular 19/2019, wherein the requirement of a DIN for all orders issued after 1st October 2019 was introduced. The circular aims to enhance transparency and accountability in the income tax assessment process.

By quashing the assessment order on the grounds of non-compliance with the circular, the ITAT has set a precedent for strict adherence to the DIN requirement and underscored the importance of following procedural guidelines established by the CBDT.

This ruling serves as a reminder for income tax authorities to meticulously comply with the provisions of CBDT Circular 19/2019, ensuring that assessment orders are accompanied by a valid DIN and that any exceptional circumstances for not quoting the DIN are duly explained within the body of the order.

The decision of the ITAT in the Pratap Singh Yadav case sheds light on the significance of maintaining procedural integrity and upholding the principles of transparency and accountability in the realm of income tax assessments.

This noteworthy judgment is poised to have a far-reaching impact on future cases, reinforcing the importance of adherence to CBDT circulars and ensuring that assessment orders meet the required standards of compliance and transparency.

In a significant development, the Income Tax Appellate Tribunal (ITAT) in Delhi has recently delivered a noteworthy judgment in the case of Pratap Singh Yadav, wherein it quashed an assessment order that was passed without a Document Identification Number (DIN) in violation of CBDT Circular 19/2019.

The ITAT firmly rejected the contention put forth by the Revenue that the DIN was generated later and subsequently communicated to the assessee. Citing the CBDT circular, the tribunal held that if any communication is issued without a DIN, the fact and reason for the same is to be stated in the body of the order.

The crux of the matter lies in the non-compliance of the assessment order with the aforementioned circular, which not only lacked a DIN number but also failed to provide the required justification as per the conditions specified in paragraph 3 of the circular.

The ITAT’s decision emphasizes the significance of adhering to the provisions outlined in CBDT Circular 19/2019, wherein the requirement of a DIN for all orders issued after 1st October 2019 was introduced. The circular aims to enhance transparency and accountability in the income tax assessment process.

By quashing the assessment order on the grounds of non-compliance with the circular, the ITAT has set a precedent for strict adherence to the DIN requirement and underscored the importance of following procedural guidelines established by the CBDT.

This ruling serves as a reminder for income tax authorities to meticulously comply with the provisions of CBDT Circular 19/2019, ensuring that assessment orders are accompanied by a valid DIN and that any exceptional circumstances for not quoting the DIN are duly explained within the body of the order.

The decision of the ITAT in the Pratap Singh Yadav case sheds light on the significance of maintaining procedural integrity and upholding the principles of transparency and accountability in the realm of income tax assessments.

This noteworthy judgment is poised to have a far-reaching impact on future cases, reinforcing the importance of adherence to CBDT circulars and ensuring that assessment orders meet the required standards of compliance and transparency.

About the Author: CA Milind Wadhwani DISA(ICAI),FAFD(ICAI), CCCA(ICAI), Research (Phd.)Scholar

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Posted on: May 31st, 2023


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