CHANGE IN PAN NO.

[S.C. WADHWA]

During the financial year 2010-11, a company (named A) was amalgamated with another company (named B). The amalgamation was in nature of reverse merger i.e. B was merged with A resulting in company named A with pan number of B.

As on 30/09/11, the income tax return of A was filed for 2010-11 with pan no. of B. There was certain tds deductors who deducted and deposited tds (2010-11) in earlier (original) pan no. of A.

In filling income tax return, the entire tds was claimed but intimation issued u/s 143(1) disallowed the same as same not being reflected in form 26AS of A having pan no. of B because the same is reflected in form 26AS of earlier pan no. that A had before merger.

As a result, there is demand from IT department.

Please advise how to tackle this issue.

[CAGOPALJI AGRAWAL]

Only remedy is to file rectification application u/s 154 to your Jurisdictional AO.

AI Summary

Reverse Merger Tax Issue: File Rectification Application Under Section 154 for TDS Discrepancy Due to PAN Error A company (A) merged with another company (B) in a reverse merger during the 2010-11 financial year, resulting in company A retaining the PAN of company B. When filing the income tax return for 2010-11, company A used the PAN of B, but some TDS was deposited under A's original PAN. Consequently, the TDS was disallowed in the tax return, leading to a demand from the tax department. The advised solution is to file a rectification application under section 154 with the jurisdictional assessing officer to address the discrepancy.