Case Law Details
Dhanterash Sales Pvt. Ltd. Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata recently rendered a significant decision in the case of Dhanterash Sales Pvt. Ltd. versus the Income Tax Officer (ITO), shedding light on the critical issue of the timeliness of assessment orders. The tribunal ruled in favor of the assessee, highlighting procedural irregularities and lack of evidence regarding the timely issuance of the assessment order. Let’s delve into the details of the case and the tribunal’s decision.
Background of the Case: Dhanterash Sales Pvt. Ltd. filed an appeal against the order dated 01.11.2023 of the National Faceless Appeal Centre under Section 250 of the Income Tax Act. The appeal challenged the validity of the assessment order for the assessment year 2014-15, alleging that it was time-barred and issued without due process.
Legal Grounds Raised by the Assessee: The assessee raised two key legal grounds challenging the validity of the assessment order. Firstly, it argued that the absence of a Document Identification Number (DIN) in the order rendered it invalid, as per CBDT Circular No. 19 of 2019. Secondly, the assessee contended that the order was time-barred, as it was served after the prescribed deadline.
Tribunal’s Analysis and Decision: The tribunal, after considering the submissions of both parties, issued an order on 04.04.2024, directing further scrutiny of the issue regarding the timeliness of the assessment order. The tribunal sought clarification from the Income Tax Officer regarding the date of dispatch of the order and the presence of a DIN number.
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