Case Law Details
S.S. Enterprises Vs DCIT (ITAT Delhi)
Introduction: In a pivotal ruling that underscores the importance of compliance with procedural guidelines, the Income Tax Appellate Tribunal (ITAT) Delhi, in the case of S.S. Enterprises Vs DCIT, has quashed an assessment order and a notice of demand issued to the appellant for the Assessment Year 2015-16. This decision was primarily based on the absence of the Document Identification Number (DIN) in these documents, a requirement mandated by CBDT Circular No.19/2019 dated 14.08.2019.
Detailed Analysis: The appellant, S.S. Enterprises, challenged the order of the Commissioner of Income Tax (Appeals)-XXIV, Delhi, which arose from the assessment order dated 30.03.2022 passed under Section 147 r.w. Section 143(3) of the Income Tax Act, 1961. A significant point of contention was the absence of DIN on the assessment order and the subsequent notice of demand issued under Section 156 of the Income Tax Act, which was argued to be in violation of the procedural guidelines set by the Central Board of Direct Taxes (CBDT).
CBDT Circular No.19/2019 mandates the inclusion of DIN in every income tax communication to ensure proper documentation and tracking. The appellant’s counsel argued that the absence of DIN rendered these documents legally invalid, a position supported by several High Court judgments and decisions of Co-ordinate Benches of the ITAT that were cited during the proceedings.
The ITAT, after careful consideration of the submissions and precedents, concurred with the appellant. It noted that the assessment order and notice of demand were indeed issued without the requisite DIN, making them non-compliant with the CBDT circular. The Tribunal highlighted that separate communication of DIN after the issuance of the assessment order does not rectify this procedural lapse. Accordingly, the ITAT ruled in favor of the appellant, quashing both the assessment order and the notice of demand for non-compliance with mandatory procedural requirements.
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