2001 (12) TMI 45 - HC - Income Tax

Court Mandates Timely PAN Issuance; Emphasizes Rights & Accuracy

The court ruled in favor of the petitioner, emphasizing the right to timely issuance of Permanent Account Numbers (PAN) under section 139A of the ... - Issues:Delay in granting Permanent Account Number (PAN) under section 139A of the Income-tax Act, 1961.Analysis:The petitioner filed a writ petition seeking the issuance of a PAN number, highlighting the adverse impact on their business and social status due to the delay. The income-tax authority argued that the process requires scrutiny, suggesting the petition be treated as a representation for timely consideration. The court noted the absence of a specific time limit for issuing PAN numbers and emphasized the importance of timely issuance, considering it a right of the taxpayer under the Constitution. Section 139A of the Income-tax Act mandates the allotment of PAN numbers to eligible individuals, with specific criteria outlined in sub-sections (1), (1A), (2), and (3) of the Act.The court observed that sub-section (3) of section 139A, which requires the immediate allotment of PAN numbers, remains unchanged since its introduction in 1995. Questioning the lack of clarity on timeframes for other categories, the court criticized the delay in establishing rules or guidelines for timely issuance. Emphasizing the PAN as a crucial identification mark, the court held that withholding it violates a citizen's rights. It was noted that neither the Income-tax Rules nor Form No. 49A provided provisions for time-bound issuance, allowing authorities to exploit the vagueness for their benefit.The court ruled for the implementation of a time-bound program for PAN issuance, setting a maximum period of three months from the date of application. This timeframe aimed to align with the revenue collection practices of the authority. The judgment stressed the importance of accuracy in issuing PAN numbers and cards to avoid post-issuance errors. Authorities were instructed to provide reasons promptly if delays were anticipated, to prevent exceeding the stipulated three-month period and potential judicial scrutiny. The writ petition was disposed of with the directive that the maximum period for PAN issuance is three months, without any cost implications for the parties involved.