Case Law Details
Guru Shoes Tech Pvt. Ltd Vs ITO (ITAT Agra)
The Income Tax Appellate Tribunal (ITAT), Agra Bench, partly allowed the assessee’s appeal for Assessment Year 2016-17 arising from an order passed by the National Faceless Appeal Centre against the assessment order framed under Sections 147 read with 144 of the Income-tax Act, 1961.
At the outset, the Tribunal considered a delay of 535 days in filing the appeal before it. After examining the reasons stated in the condonation petition, the Tribunal held that the assessee had been prevented by sufficient cause from filing the appeal within the prescribed time. Accordingly, in the interest of substantial justice, the delay was condoned and the appeal was admitted for adjudication.
The Tribunal first examined the assessee’s contention that the assessment order as well as the appellate order had been passed using a non-existent Permanent Account Number (PAN), which went to the root of the matter. The assessee, a private limited company since its inception, had originally been allotted a PAN in the status of a firm. Upon noticing the error, the assessee surrendered the incorrect PAN on 06.06.2011 and obtained a fresh PAN in the correct status of a company. Thereafter, the assessee consistently filed its income tax returns using the new PAN.
The Tribunal noted that reassessment proceedings for Assessment Year 2018-19 had also been initiated using the surrendered PAN. During those proceedings, the assessee informed the Assessing Officer that the old PAN had ceased to exist, leading to the dropping of those proceedings by the department itself.
Since the PAN allotted in the firm’s category had already been surrendered in 2011, the Tribunal held that it was a non-existent PAN when reassessment proceedings for AY 2016-17 were initiated. Consequently, the assessment proceedings were quashed. In view of this finding, the remaining grounds of appeal were treated as academic and left open.
Accordingly, the appeal of the assessee was partly allowed.
FULL TEXT OF THE ORDER OF ITAT AGRA
1. The appeal in ITA No. 234/AGR/2026 for AY 2016-17, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 25.07.2024 against the order of assessment passed u/s 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 09.03.2022 by the Assessing Officer, ITO, Circle-2(1)(1), Agra (hereinafter referred to as ‘ld. AO’).
2. At the outset, I find there is delay in filing of appeal by the assessee before this Tribunal by 535 days. Considering the reasons adduced in the condonation petition, I hold that assessee was prevented from sufficient cause in not filing the appeal in time. In the interest of substantial justice, I am inclined to condone the delay and admit the appeal of the assessee for adjudication. The ld AR before me, vehemently argued Ground Nos. 3 and 4 stating that the entire assessment need to be quashed in view of the fact that the assessment order has been framed on a non-existent PAN and appellate order also was passed for the non-existent PAN. Since, this issue goes to the root of the matter, I deem it fit to first adjudicate the same.
3. I have heard the rival submissions and perused the material available on record. The assessee is a private limited company since its inception. But the PAN was allotted by the Income Tax Department in the status of firm i.e. AADFG4470F. Noting the mistake committed by the Department, the assessee had surrendered this wrong PAN on 06.06.2011. The evidence in this regard is enclosed in page 3 of the paper book. The assessee had obtained a new PAN in the status of company i.e. AAECG2431L. The assessee has been filing its income tax returns only with the new PAN obtained in the name of the company which is correct. I find that the proceedings for AY 2018-19 were sought to be reopened u/s 148A of the Act in the name of old PAN i.e. AADFG4470F. During the course of that reassessment proceedings for AY 2018-19, the assessee submitted that the wrong PAN allotted in firm’s category had already been surrendered on 06.06.2011 and requested for dropping the proceedings. The AO took due cognizance of this and dropped the reassessment proceedings for AY 2018-19 vide order dated 31.03.2023. The evidence in this regard is enclosed in pages 28 to 32 of the paper book. Hence, it is very clear and duly established that PAN allotted in firm’s category for assessee company was duly surrendered on 06.06.2011 itself by the assessee and it is a non-existent PAN when proceedings stood initiated on the assessee for AY 2016-17, i.e. year under consideration before me. Hence, I have no hesitation to quash the assessment proceedings as it was framed on a non-existent PAN. Accordingly, Ground Nos. 3 and 4 raised by the assessee are allowed.
4. Since, the entire assessment is quashed, the adjudication of other grounds become academic in nature and they are left open.
5. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 02/06/2026.
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