Addition Made U/s 69C Based On Time Barred Assessment Is Not Sustainable: Kolkata ITAT
Pankaj Bajpai
14 March 2024 1:30 PM GMT
On finding that there is no evidence on the file either direct or indirect or even circumstantial to show that the order was passed by the AO on or before the last date of limitation for the same, the Kolkata ITAT held that the assessment order passed by the AO is time-barred and deleted the addition made u/s 69C of the Income Tax Act, 1961.The Bench of the ITAT comprising of Sanjay...
On finding that there is no evidence on the file either direct or indirect or even circumstantial to show that the order was passed by the AO on or before the last date of limitation for the same, the Kolkata ITAT held that the assessment order passed by the AO is time-barred and deleted the addition made u/s 69C of the Income Tax Act, 1961.
The Bench of the ITAT comprising of Sanjay Garg (Judicial Member) and Rajesh Kumar (Accountant Member) observed that, “Even the impugned assessment order was neither uploaded on the Income Tax Portal nor the same was sent to the assessee through online mode i.e. by email etc. It has not been clarified by the Department that what prevented the Assessing Officer from generating the DIN number or serve the order upon the assessee through email, whereas, such a recourse of uploading the order on portal and sending the same through electronic mode is adopted generally in almost every case.” (Para 7)
“The order as per the records of the postal department for the first time was dispatched/booked on 14.02.2020. All the above noted relevant factors would show that the order was not passed by the Assessing Officer within the stipulated period, therefore, he did not adopt the regular practice of generating DIN number, uploading the order on the Income Tax website or portal and sending the order through email”, added the Bench. (Para 7)
As per the brief facts of the case, the assessee is challenging the additions made/confirmed by the lower authorities on merits and also assailed the validity of the assessment order framed by the AO on two legal grounds. Firstly, that the assessment order is bad in law as no DIN number has been mentioned in the body of the order in violation of the CBDT Circular No.19 of 2019; secondly that the assessment order in this case was barred by limitation as the assessment order was served upon the assessee on 15.02.2020 and that the facts and circumstances suggest that the order was passed after 31.12.2019, which was the last date prescribed as per provisions for passing of the impugned assessment order.
The Bench noted that the AO/ Income Tax Officer would reveal that despite expressed instruction of the CBDT, no DIN number was generated by the AO and hence there was no mention of the DIN number either in the body of the order or any other covering letter etc.
The Bench observed while referring the case of Tata Medical Centre Trust vs. CIT' reported in (2022) 140 taxmann.com 431 (Kolkata-Trib.) taking note of the CBDT Circular No.19 of 2019 that where the impugned order was passed by the concerned Income Tax authorities manually without Document Identification Number (DIN) in its body, the said order would be invalid and deemed to have never been issued.
The Bench further observed that had the AO passed the order before 31.12.2019, he would have generated the DIN Number which would also bear the date of its generation and it would have been evidence of the fact that the order was passed on such date.
Therefore, on finding addition made by the AO is not sustainable, ITAT allowed the assessee's appeal.
Counsel for Appellant/Taxpayer: Akkal Dudhewala
Counsel for Respondent/Department: Abhijit Kundu
Case Title: Dhanterash Sales Pvt. Ltd verses ITO
Case Number: I.T.A. No.1184/Kol/2023
