Case Law Details
Mavoor Gramasree Vanitha Sahakarna Sangha Vs CIT (Kerala High Court)
Introduction: The case of Mavoor Gramasree Vanitha Sahakarna Sangha vs. CIT, heard in the Kerala High Court, dealt with the appealability of an income tax assessment order passed on an old PAN despite the issuance of a new PAN.
Detailed Analysis: Mavoor Gramasree Vanitha Sahakarna Sangha, a cooperative society, received a notice under Section 148 of the Income Tax Act concerning its old PAN for the assessment year 2018-19. Although the society had surrendered the old PAN and obtained a new one, it faced proceedings and an assessment order under the old PAN. The assessment order treated a sum as unexplained money under Section 69A.
The petitioner argued its inability to file an appeal due to the surrender of the old PAN. However, the Revenue contended that both the old and new PANs were active, with transactions made under the old PAN even after the issuance of the new one.
The Court considered instructions from the Principal Commissioner of Income Tax, confirming the active status of both PANs. It directed the petitioner to file an appeal against the assessment order using the old PAN. The petitioner was instructed to register in the e-filing portal using the old PAN for further proceedings.
Conclusion: The Kerala High Court’s decision clarifies that an income tax assessment order passed on an old PAN remains appealable, notwithstanding the issuance of a new PAN, as long as the old PAN remains active. The case underscores the importance of procedural compliance and the necessity for taxpayers to take appropriate actions regarding PAN status changes to avoid procedural complications in income tax assessments and appeals.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. Heard the learned Counsel appearing for the petitioner and respondents.
2. Petitioner is a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. According to the averments in the writ petition, the petitioner works for the betterment empowerment of its female members, providing financial assistance to them. Petitioner was issued a PAN card with No. AAABM2623H. This PAN card was issued as “Body of Individual” and not as “Association of Persons”. The petitioner surrendered the PAN card bearing No. AAABM2623H and applied for new PAN card. The Income Tax Department thereafter issued new PAN card bearing No. AAJAM4041R under the status of “association of persons”.
3. The petitioner had filed return of its income for the assessment year 2019-20 under new PAN Card with No. AAJAM4041R. The petitioner, however, received a notice under Section 148 of the Income Tax Act in respect of the old PAN card for the assessment year 2018-19. Thereafter, an order under under Section 148A(b) of the Income Tax Act was passed against the petitioner in respect of the old PAN card. Subsequent proceedings has taken place and assessment order dated 20.03.2023 has been passed. In the said order passed under Section 147 read with Section 144 in respect of the assessment year 2018-19, an amount of Rs. 60,66,000/- has been treated as unexplained money under Section 69A of the Income Tax Act.
4. The learned Counsel for the petitioner submits that the petitioner has surrendered the old PAN card and petitioner is unable to file the appeal in respect of the said assessment order dated 20.03.2023 for which corrigendum was issued on 31.03.2023.
5. On the last date of hearing, i.e. on 15.01.2024, this Court asked the learned Standing Counsel for the respondents to have instructions in the matter. Learned Counsel for the Revenue has got written instructions from the Office of the Principal Commissioner of Income Tax, Kozhikode, which has been handed over to the Court. The instructions received would suggest that both the PAN cards of the petitioner/assessee i.e. AAABM2623H and AAJAM4041R are active as per the ITBA site and the PAN card with No. AAJAM4041R is allotted only on 09.06.2019.
6. It also says that the assessee did not file the return of income for the assessment year 2018-19 when the old PAN card was active and new was not issued. The assessee had made cash transactions using the old PAN card i.e. AAABM2623H with Kozhikode District Cooperative Bank and UCO Bank. A notice under Section 148 was served on the assessee on 10.04.2022 by post and by e-mail on 31.03.2022. Subsequently, notice under Section 142(1) was issued.
7. Further it states that the petitioner’s/assessee’s request for deletion of the old pan card could not be considered for the reason that the proceedings are pending against that PAN. Therefore, the old PAN very much in active even now and the petitioner/assessee can file the appeal against the assessment order dated 20.03.2023 before the CIT(A) for which the corrigendum dated 31.03.2023 was issued.
8. Considering the aforesaid instructions as noted above, the writ petition is disposed of with liberty to the petitioner to file appeal against the assessment order dated 20.03.2023 using the old PAN card i.e. AAABM2623H and, if such an appeal is filed, the same shall be proceed with in accordance with the law. The petitioner is required to get registered in the e-filing portal using the old PAN i.e. PAN card bearing No. AAABM2623H.
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