Case Number: ITA 1542/DEL/2020
Appellant: Brandix Mauritius Holdings Limited, Mauritius
Respondent: DCIT International Taxation Circle-1(1)(2), New Delhi
Assessment Year: 2011-12
Result: 2011-12
Case Filed On: 2020-09-03
Order Type: Final Tribunal Order
Date of Order: 2022-09-19
Pronounced On: 2022-09-19
The case of Brandix Mauritius Holdings Limited vs DCIT International Taxation Circle-1(1)(2), New Delhi addresses the validity of an assessment order issued without a Document Identification Number (DIN). The appeal was filed by Brandix Mauritius Holdings Limited against the order framed u/s 147/144C(13)/143(3) of the Income Tax Act, 1961, for the assessment year (AY) 2011-12.
Brandix Mauritius Holdings Limited, a company based in Mauritius, filed an appeal against the assessment order dated 15.10.2019, which was issued without mentioning the mandatory DIN as required by CBDT Circular No. 19/2019 dated 14.08.2019. The appellant raised several grounds challenging the validity of the reassessment proceedings and the taxability of capital gains arising from a buy-back transaction.
The appellant raised the following grounds of appeal:
The Tribunal focused on Ground No. 8, which challenged the validity of the assessment order issued without quoting the mandatory DIN. According to the CBDT Circular No. 19/2019, all communications issued by income tax authorities must contain a computer-generated DIN. The circular stipulates that any communication issued without a DIN shall be treated as invalid and deemed never to have been issued.
The Tribunal noted that the final assessment order dated 15.10.2019 did not contain a DIN, and no exceptional circumstances as outlined in the circular were recorded. The Department’s Representative (DR) argued that the DIN was generated but not reflected due to system upgrades. However, the Tribunal found this explanation insufficient and held that the non-mentioning of the DIN rendered the order invalid.
The Tribunal also admitted additional grounds raised by the appellant, including the non-provision of mandatory sanction under Section 151 of the Act and the issue of the final assessment order without a DIN.
The Tribunal concluded that the failure to mention the DIN in the assessment order dated 15.10.2019 violated the CBDT Circular No. 19/2019. Consequently, the order was deemed invalid and void-ab-initio. The Tribunal did not delve into the merits of the case, as the invalidity of the order itself was sufficient to dispose of the appeal.
In conclusion, the Tribunal allowed the appeal of Brandix Mauritius Holdings Limited, holding that the assessment order dated 15.10.2019 was invalid due to the absence of a mandatory DIN. The order was deemed never to have been issued, and all related proceedings were annulled.
Order pronounced in the open court on 19th September, 2022.
Sd/-
(SAKTIJIT DEY)
JUDICIAL MEMBER
Sd/-
(N.K. BILLAIYA)
ACCOUNTANT MEMBER
Dated: 19th September, 2022
Copy forwarded to:
Asst. Registrar
ITAT, New Delhi
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