Kai Balkrishna R Gawade Mandai Vyapari Premises Sahakari Sanstha Maryadit Vs ITO (Bombay High Court)
The Bombay High Court allowed a writ petition filed under Article 226 challenging an order dated 29th March 2023 under Section 148A(d) of the Income Tax Act, 1961 and a notice dated 31st March 2023 under Section 148 for AY 2019-20.
The Petitioner, a registered co-operative credit society, had initially obtained a PAN as a Trust, although it was assessable as an Association of Persons. After an ex-parte assessment for AY 2011-12, the Petitioner realised the mistake and obtained a new PAN. It repeatedly requested the Income Tax Department to cancel the old PAN and migrate the new PAN to the appropriate jurisdiction. The Petitioner filed its return for AY 2019-20 under the new PAN.
A notice under Section 148A(b) was subsequently issued based on a time deposit of ₹2,56,14,097 with Punjab National Bank, formerly known as United Bank of India. The Petitioner submitted that there were no new time deposits during AY 2019-20 and that the deposits and interest had already been disclosed in the return filed under the new PAN. The explanation was rejected and the impugned Section 148A(d) order and Section 148 notice followed.
