Rajesh Maan Vs ITO (ITAT Delhi)
4,442-Day Appeal Delay Condoned as Tax Demand Belonged to Stranger; Another Person’s Incorrect PAN Entry Cannot Create Valid Tax Demand; Procedural Delay Cannot Justify Recovery of Stranger’s Tax Liability; Wrongly Mapped PAN Demand Deleted Without Remand Despite Extraordinary Delay: Delhi ITAT
The Delhi ITAT has held that tax relating to another person cannot be recovered from an assessee merely because that person accidentally quoted the assessee’s PAN in his return. Even though the appeal was filed after an extraordinary delay of 4,442 days, the delay was condoned because the assessee became aware of the error only when recovery proceedings commenced. Since the demand admittedly did not belong to the assessee, it was deleted instead of remanding the matter.
A return belonging to someone else
The assessee, Rajesh Maan, had actual income of ₹2,15,649 for AY 2011-12.
However, another person, Mr. Rohit Maan, having total income of ₹15,99,880, filed his return for the same assessment year by mistakenly mentioning the PAN belonging to the assessee.
Because the incorrect PAN was entered in the return, the CPC processed Mr. Rohit Maan’s income in the assessee’s PAN & raised the consequential demand against the assessee.
Thus, although the income, employment & return belonged to Mr. Rohit Maan, the tax liability was electronically attached to the assessee merely because of an incorrect PAN entry.
