Tax reassessment based on a cancelled PAN was invalid: ITAT Pune

By CA Sandeep Kanoi Income Tax Judiciary March 20, 2025

TaxGuru Citation: 2025 taxguru.in 2022
Case Name: ITO Vs Agrasen Maharaj Nagari (ITAT Pune)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2017-18
Courts: All ITAT, ITAT Pune

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ITO Vs Agrasen Maharaj Nagari (ITAT Pune)

The Income Tax Appellate Tribunal (ITAT) Pune addressed an appeal filed by the Income Tax Officer (ITO) against the order of the National Faceless Appeal Centre (NFAC). The case involved Agrasen Maharaj Nagari, a cooperative society, and a reassessment order issued under Section 147 of the Income-tax Act, 1961, based on a cancelled PAN. The society had informed the department about the cancellation of its old PAN (AAJCS0457K) and the adoption of a new PAN (AAMAS4518Q). The reassessment was initiated due to information from the ITBA module regarding time and cash deposits made by the society. The Assessing Officer (AO) proceeded with the reassessment using the cancelled PAN, disregarding the society’s explanation that the deposits were accounted for under the new PAN.

The Commissioner of Income Tax (Appeals) [CIT(A)] overturned the AO’s decision, recognizing that the reassessment was conducted using an invalid PAN. The CIT(A) noted that the society had provided documentation confirming the PAN change, and that similar contentions had been accepted by the department in previous assessment years. The CIT(A) found that the name of the society was consistent across both PANs, with only a minor character change. The society had also presented evidence of its attempts to inform the AO about the PAN cancellation. The ITAT upheld the CIT(A)’s order, stating that the reassessment based on the cancelled PAN was not in accordance with the law. The tribunal found no contrary evidence presented by the revenue to warrant interference with the CIT(A)’s decision. The ITAT concluded that the CIT(A) had correctly verified the PAN data and acknowledged the department’s awareness of the PAN change, thereby dismissing the revenue’s appeal.