Challenge to Section 148A(d) Order: Court Allows Representation on Surrendered PAN for 2015-2016 Assessment Year.

The HC addressed a challenge to an order under Section 148A(d) of the Income Tax Act, 1961, related to the use of a surrendered PAN number for the assessment year 2015-2016. The court allowed the petitioners to present a representation to the Income Tax Authority within two weeks to resolve their grievances. The authority must decide on the representation within four weeks, providing a hearing opportunity. A status quo order was issued for eight weeks regarding the impugned order, contingent on the timely submission of the representation. The writ petition was disposed of with these directives.

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Issues:
Challenge to impugned order under Section 148A(d) of the Income Tax Act, 1961 due to use of different PAN number.

Analysis:
The petitioners challenged the impugned order dated 13th April, 2022, under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2015-2016, citing that the order was passed using a different PAN number that had already been surrendered by them. The petitioners had informed the respondent Department about surrendering the PAN number before the order was passed. The respondent, represented by Mr. Rai, argued that the petitioners had two PAN numbers, and the proceedings were initiated using the PAN number valid during the transactions in question, highlighting the presence of different names in both PAN numbers.

The Court, after considering the facts and circumstances, granted the petitioners the liberty to submit a representation before the concerned Income Tax Authority to address their grievances raised in the writ petition. The petitioners were directed to file this representation within two weeks, and if done so within the stipulated time, it would be reviewed and decided upon in accordance with the law. The petitioners or their authorized representative were to be given an opportunity of hearing within four weeks from the receipt of the representation.

During the period until the representation was disposed of, a status quo order was issued regarding the impugned order under Section 148A(d) of the Act dated 30th April, 2022, for eight weeks. However, if the petitioners failed to submit the representation within the specified timeframe, the order would lose its effect. The writ petition was disposed of with these directions and observations, providing a clear timeline and process for addressing the concerns raised by the petitioners.

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