2022 (10) TMI 406 - HC - Income Tax

Petitioner to Submit Representation for PAN Activation Decision within 60 Days

RAMCHANDRA HARYANI S/O JETHANANDJI HARYANI Versus UNION OF INDIA, PRINCIPAL COMMISSIONER OF INCOME TAX, INDORE TAX OFFICER, INCOME TAX OFFICER

The court directed the petitioner to submit a detailed representation to the Income Tax Commissioner within 60 days to decide whether to activate the old ... Filling of ITR quoting wrong PAN - grievance of the petitioner is that he has been filing Income Tax Returns quoting PAN-A, but now since the same has been deactivated, he is compelled to file returns by quoting PAN-B which he had already surrendered - HELD THAT:- The petitioner is an IT assessee, he has to file income tax returns for this financial year or previous financial years for which he has to have PAN. The old PAN has been deactivated and the new PAN which he got cancelled has been now activated for the proceedings of section 148 of the Act of 1961. If he uses this PAN -B he may face complications in future. We are of the considered opinion that this complex issue is liable to be examined by the Income Tax Commissioner / respondent No.1 considering the practical problem which is being faced by the petitioner and also the complications which may arise in future while filing Income Tax Returns and quoting the wrong PAN. The Commissioner shall also decide the issue as to which PAN is to be used by the petitioner for future transactions and Income Tax Returns. The petition is disposed of with a direction to the petitioner to submit detailed representation to the Income Tax Commissioner / respondent No.1, who shall consider and decide the same in accordance with law within a period of 60 days from the date of receipt of such representation. Issues:1. Deactivation of old PAN and activation of new PAN.2. Allegations of using multiple PANs for transactions.3. Pending show-cause notice under Section 148A(b) of the Income Tax Act, 1961.4. Request for directions to cancel new PAN and activate old PAN for filing Income Tax Returns.Analysis:1. The petitioner filed a writ petition seeking to activate the erroneously cancelled old PAN (ABDPH0428F) and cancel the new PAN (AAGPH0406B) issued due to a mistake in the application process. The petitioner had never used the new PAN for any transactions or tax filings. The Income Tax Department had initiated proceedings under Section 148A(b) based on allegations of undisclosed transactions using the new PAN.2. The petitioner's counsel argued that the petitioner had been using the old PAN for filing tax returns for ten years and faced business transaction issues due to the deactivation of the old PAN. However, the respondents contended that since the assessment proceedings were ongoing for the new PAN, it was rightly activated, and the petitioner could file returns using the second PAN.3. The court referred to Section 139A of the Income Tax Act, which prohibits an individual from having two PAN cards. The court acknowledged the petitioner's predicament of being unable to file returns using the old PAN, which was deactivated. The court emphasized the need for the Income Tax Commissioner to address the practical problems faced by the petitioner and decide which PAN should be used for future transactions and tax filings.4. The court disposed of the petition by directing the petitioner to submit a detailed representation to the Income Tax Commissioner for a decision within 60 days. The court highlighted the importance of resolving the issue to avoid complications in future tax filings and transactions. The judgment aimed to provide clarity on the correct PAN to be used by the petitioner moving forward, considering the legal provisions and the petitioner's circumstances.