Income Tax Department to Challenge Ruling of Delhi HC Regarding IT Assessment Order

The Delhi High Court’s (HC) decision that any IT assessment order issued without a Document Identification Number (DIN) has no legal standing is likely to be challenged by the Income Tax (IT) Department in the Supreme Court (SC).

In April, the Delhi High Court upheld the terms of a Central Board of Direct Taxes (CBDT) circular from 2019 that mandated the use of DIN on all issued documents.

Any communication by any Income Tax Authority (ITA) without a DIN will be regarded as invalid and will be deemed to have never been issued, according to a CBDT circular dated August 14, 2019 that the CBDT released.

The IT order’s non-generation of a DIN is, at most, a technical error. There have been multiple occasions where technical issues prevented the DIN from being mentioned in the order. However, a government source stated that a number of the orders issued in the passed are no longer legally valid as a result of the Delhi High Court’s decision.

The IT Department is considering appealing to the Supreme Court. The source stated that the appeal filing procedure is nearing completion and that expert opinions are being sought.

The IT Department argued before the Delhi High Court that the assessment procedures shouldn’t be invalidated because the failure to generate and allocate DIN is, at most, an error or a defect that falls under section 292B of the IT Act.

However, the HC noted that given the wording used in paragraph 4 of the CBDT 2019 circular, the claim that recourse may be made under Section 292B of the Act is “untenable.”

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