SPS Structures Ltd. Vs DCIT (ITAT Chandigarh)
In a recent legal battle between SPS Structures Ltd. and the Deputy Commissioner of Income Tax, Central Circle 1, Chandigarh, the crux of the dispute revolves around the validity of the assessment order passed under section 143(3) read with section 147 of the Income Tax Act. The contention primarily rests on the alleged non-compliance with Circular No. 19/2019 dated 14.08.2019 and Circular No. 27/2019 dated 26.09.2019 issued by the Central Board of Direct Taxes (CBDT).
Arguments Presented by SPS Structures Ltd.:
i. Digital vs. Manual Proceedings:
- SPS Structures Ltd.’s representative argued that the assessment order was passed manually without complying with the procedures laid down in Circular No. 27/2019, which mandated digital proceedings unless specific approval was obtained for manual processes.
- The representative highlighted that the circular’s guidelines were subsequently incorporated into the statute through Section 144B of the Income Tax Act, reinforcing the mandatory nature of the digital proceedings.
ii. Document Identification Number (DIN) Non-Compliance:
- SPS Structures Ltd. contended that the assessment order lacked the essential Document Identification Number (DIN) mandated by CBDT Circular No. 19/2019.
- The absence of DIN on the assessment order was argued to be a fatal flaw, rendering the order void, as per decisions from various benches of the Tribunal in similar cases.
iii. Separate DIN for Assessment Order and Demand Notice:
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