Case Law Details
Maneken Keshvalla Patel Vs NFAC (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently pronounced a significant ruling in the case of Maneken Keshvalla Patel Vs National Faceless Appeal Centre (NFAC). In a critical judgement, the tribunal stated that merely citing different Permanent Account Numbers (PANs) by the assessee and the Assessing Officer cannot be grounds for dismissing an appeal.
Analysis: The dispute arose around the addition of a sum to the appellant’s account as an unexplained cash credit. The Assessing Officer issued a notice on a PAN that the appellant claimed was incorrect. The appellant argued that the assessment proceedings were illegal due to the change in place of residence and the incorrect PAN. The CIT(A) maintained that the appeal was not maintainable, arguing that the assessment order was passed on a different PAN than the one filed in the appeal.
However, the ITAT Mumbai opined that an appeal could not be dismissed as non-maintainable solely based on a difference in PANs cited by the assessee and the Assessing Officer. Instead, the tribunal emphasized the need to examine the source of the credit under section 68 of the Act, a task neither the Assessing Officer nor the Ld. CIT(A) had undertaken.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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