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Facts
The assessee's income tax return for AY 2012-13 was initially processed u/s 143(1). Subsequently, the AO initiated reassessment proceedings u/s 148 based on information regarding cash deposits and financial transactions, completing the assessment ex-parte u/s 144/147 with additions to income. The CIT(A) dismissed the assessee's appeal due to non-representation.
Held
The Tribunal observed that the CIT(A) dismissed the appeal without adjudicating on merits and that the critical issue of the absence of a Document Identification Number (DIN) in the assessment order, as per CBDT Circular No. 19/2019, was raised for the first time. Therefore, the Tribunal remanded the case back to the CIT(A) for fresh adjudication on the merits, including the DIN issue, ensuring the assessee is given a proper opportunity of hearing.
Key Issues
Whether the assessment order passed without a Document Identification Number (DIN) is legally valid as per CBDT Circular No. 19/2019, and whether the CIT(A) erred in dismissing the appeal solely due to non-representation without considering the merits.
Sections Cited
Section 250 of Income Tax Act, 1961, Section 147 of Income Tax Act, 1961, Section 144 of Income Tax Act, 1961, Section 143(1) of Income Tax Act, 1961, Section 156 of Income Tax Act, 1961, Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963, CBDT Circular No. 19/2019
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT(A) NFAC Delhi dated 22.03.2024 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the ITO, Ward-1, Srinagar, passed u/s 147 r.w.s. 144 of the Act, 1961 dated 03.12.2019. absence of DIN in the body of the assessment order.
The brief facts of the case are that the assessee has filed return of income declared total income at Rs.1,46,976/- on 15.03.2013 which was processed u/s 143(1). Subsequently, on the basis of information gathered by the Assessing Officer regarding cash deposit made by the assessee in Jammu & Kashmir Bank A/c No. xxxxx16873 amounting to Rs.10.16 lakhs and evidence of financial transactions amounting to Rs.26.94 lakhs indulged in by the assessee, proceedings were initiated u/s 148 of the Act (after necessary approval) and in absence of proper explanation or proper representation filed by the assessee in course of assessment proceeding, the assessment has been completed on a total income of Rs.19.11 lakhs (which included an amount of Rs.12.31 lakhs being the cash deposited in the bank account plus an amount of Rs.2.15 lakhs being 8% of the remaining deposits plus an amount of Rs.5.32 lakhs being the profits estimated on gross receipts declared by the assessee).
The matter carried in appeal has been dismissed by the ld. first appellate authority due to non-representation on various dates of hearing and in absence of any response to the notices issued through e-mail id registered in the e-filing portal.
In course of hearing, before the Tribunal, the ld. AR of the assessee submitted that the order passed u/s 147/144 of the Act is invalid in view of the fact that no DIN u/s 156 of the Act and in support of his contention he relied upon the CBDT Circular No. 19/2019 dated 14th August, 2019. He further stated that the ld. first appellate authority has not considered the said aspect of the matter and specifically referred to paragraph 4 of the Circular No. 19/2019 to argue that the Board specifically stated that any communication issued after 1st October, 2019 which is not confirmity with para no. 2 and 3 shall be treated as invalid and shall be deemed to have never been issued. He further submitted that on perusal of the assessment order and the notice of demand dated 03.12.2019, it will reveal that no DIN is mentioned in the body of the assessment order, nor any reason of exceptional circumstances as per para 3 of Circular is mentioned in the order and as such, in view of the directions of the circular the assessment order is not legally valid.
The ld. DR relied on the order of the ld. CIT(A) and submitted that this issue has been raised by the assessee for the first time before the Tribunal and the same was never a part of the grounds of appeal
contained in Form No.
35. He further submitted that in the instant case, the DIN has been generated separately in the case of the assessee on 03.12.2019 vide document identification no. 2012107703, in respect of the order passed u/s 144 r.w.s. 147 and already communicated to the assessee and he further stated that argued that there is nothing wrong in the said DIN evident from the record placed (in paper book page no. 11).
7. As such, he prays for upholding the appellate order.
We have considered the rival submissions and considered the materials on record and we find that the ld. first appellate authority has dismissed the appeal on account of non-representation on the part of the assessee and as apparent from the appellate order, notices has been issued in the e-mail id as registered in the e-filing portal, but there is no evidence of issue of notice in the e-mail id stated in Form No. 35.
We further note that the issue of DIN which is raised by the assessee for the first time was never a part of the grounds of appeal in Form No. 35 and as such has not been adjudicated upon by the ld. first appellate authority.
10. As such, we remand the matter back to the files of the ld. CIT(A) for adjudication on the grounds contained in Form No. 35 on merits of the case and the assessee is also directed to file all documentary evidences and submissions in support of his contention and to fully cooperate in appellate proceedings.
The assessee to be allowed reasonable opportunity of being heard and notices to be issued in the e-mail id provided in Form No. 35.
(including the issue of DIN).
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 22.09.2025