Mallikarjun Souhard Sahakari Niyamit Vs ITO (ITAT Bangalore)
Bangalore ITAT Restores Assessment Made Under Old PAN Despite Return Being Filed Under New PAN
The assessee, a cooperative society registered under the Karnataka Cooperative Societies Act, initially obtained a PAN in the status of an Artificial Juridical Person. It subsequently obtained a new PAN with the status of an Association of Persons, began filing returns under the new PAN from AY 2013-14 and applied for cancellation of the old PAN.
For AY 2018-19, the assessee filed its return under the new PAN. However, since certain transactions were reflected under the old PAN and no return had been filed against that PAN, reassessment proceedings were initiated. Despite the assessee producing the return filed under the new PAN and its earlier request for cancellation of the old PAN, the AO made additions under sections 69A, 69 and 69C, principally because the old PAN remained active. The CIT(A) confirmed the additions.
The ITAT noted that the jurisdictional AO’s own report acknowledged that the assessee had filed its return under the new PAN. The principal issue was therefore the continued activation of the old PAN and whether the transactions recorded against it had already been accounted for in the return filed under the new PAN.
Considering the assessee’s undertaking to pursue cancellation of the old PAN, the Tribunal set aside the orders of the lower authorities and restored the matter to the AO for fresh assessment in accordance with law. The assessee was directed to get the old PAN cancelled, after which the AO could redo the assessment and verify the transactions.
List of Cases Discussed / Relied Upon
No judicial precedent is cited, discussed or relied upon in the supplied substantive analysis.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 13/02/2026 in respect of the A.Y. 2018-19.
2. The brief facts of the case are that the assessee is a registered co-operative society under the provisions of the Karnataka Co-operative Societies Act. Initially, the society was treated as an Artificial Juridical Person and got a PAN as AAAJM1654L. The assessee got a new PAN in the status of Association of Persons and applied for the cancellation of the old PAN. Thereafter the assessee filed the return of income in the new PAN. The AO based on the information that the assessee had effected transactions in the old PAN but not filed their return of income, had initiated proceedings u/s. 148A(b) and made order u/s. 148A(d) of the Act. Notice u/s. 148 was also issued. The assessee had not filed their return of income and therefore notice u/s. 142(1) was issued. The assessee had replied to the said notice and stated that they have filed their return of income in the new PAN and requested to drop the proposals. The AO based on the fact that the old PAN was not cancelled, issued a show cause notice proposing to make addition u/s. 69A of the Act. The assessee replied that the department has not cancelled the old PAN and from the A.Y. 2013-14, the assessee had filed their return of income in the new PAN and also enclosed the ITR copy for A.Y. 2018-19 and the copy of the letter given to local AO for cancelling the old PAN. Thereafter, the e- assessment centre called for a report from the JAO and the JAO gave a report that the assessee had filed their return of income in the new PAN and the old PAN is still active. The AO on the basis of the report again issued a notice u/s. 142(1) for which the assessee had not furnished any reply and therefore the AO had concluded the assessment by making additions u/s. 69A, 69, 69C and the other additions.
3. As against the order, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A) had confirmed the additions made by the AO.
4. As against the said order, the present appeal has been filed by the assessee before this Tribunal.
5. At the time of hearing, the Ld.AR submitted that the assessee is filing return of income in the new PAN and also furnished the return copy and also the letter seeking to cancel the old PAN was produced before the authorities and therefore the assessment made on the very same transactions are not in order. Further, the Ld.AR submitted that the fact of filing the return was also accepted by JAO and therefore the non-cancellation of the PAN by the authorities could not be a reason for making the assessment in old PAN. The Ld.AR further undertook that the assessee will see that the old PAN would be cancelled and prayed to allow the appeal.
6. The Ld.DR submitted that the assessee had not produced the proof for the cancellation of the old PAN and also not established the fact that the deposits etc. were properly accounted for and included in the return of income filed under the new PAN and therefore the orders of the lower authorities are in order.
7. We have heard the arguments of both sides and perused the materials available on record.
8. The only dispute involved in the appeal is about the assessment made on the assessee in the old PAN. Admittedly, the assessee used the old PAN and thereafter obtained a new PAN and sought for the cancellation of the same, but the said request was not followed up and therefore the old PAN was still in existence. The AO based on the fact that the old PAN was linked and used by the assessee, made the addition u/s. 69C, 69, 69A of the Act.
9. The report of the JAO indicates that the assessee had filed the return of income for the A.Y. 2018-19 in the new PAN and also informed that the old PAN is active. It is the case of the assessee that from the A.Y. 2013-14, the assessee is filing the return in the new PAN. The only allegation of the AO is that the assessee’s old PAN is still active and therefore the assessment made is in order.
10. In such circumstances and also considering the undertaking given by the assessee that they will follow up the cancellation of the old PAN, we are inclined to set aside the orders of the lower authorities and remit this issue to the file of the AO for fresh consideration and in accordance with law. We also direct the assessee to get the old PAN cancelled and thereafter the AO could undertake the exercise of redoing the assessment afresh.
11. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 18th August, 2026.
