Case Law Details
Kimberly Clark India Pvt. Ltd Vs DCIT (ITAT Pune)
Introduction: In a significant case of Kimberly Clark India Pvt. Ltd Vs DCIT (ITAT Pune), the importance of adhering to CBDT Circular No. 19/2019 was highlighted. The tribunal declared the assessment order void ab initio as it lacked the requisite Document Identification Number (DIN), thereby breaching the CBDT circular’s guidelines.
Analysis: The judgment underlines the importance of complying with the CBDT Circular 2019, which mandates the inclusion of a DIN for all tax-related communication. The assessee’s legal ground in this appeal addressed the validity of the order, emphasizing its non-compliance with the DIN requirement. Although the respondent tried to justify the absence of DIN citing transition period and manual record keeping, the ITAT favored the appellant citing the crucial role of DIN in maintaining a proper audit trail of communication. The ruling leaned on precedents set by the Delhi High Court and the Supreme Court, which stress that CBDT circulars bind the Revenue in their administration or implementation. Any violation thereof, as in this case, can be detrimental to the assessee.
Conclusion: The verdict reaffirms the significance of the CBDT circular and underscores the validity of assessment orders strictly adhering to these guidelines. This ruling serves as a stern reminder to tax authorities of the importance of incorporating a DIN in every communication, as failure to do so could render orders invalid.
FULL TEXT OF THE ORDER OF ITAT PUNE
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