TaxTMI 
TaxTMI 
2025 (11) TMI 1392
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.... gross violation of principles of natural justice. 2. Without prejudice, the Id. CIT(A) erred in dismissing the appeal of the appellant as infructuous on the ground that assessment order is passed with Old PAN, and the appeal is filed with New PAN. 3. The Id. CIT(A) erred in dismissing the appeal without putting the appellant on notice about the defect. The Id. CIT(A) further erred in dismissing the appeal as infructuous after filing written submissions, calling for remand report from AO, and reply to remand report filed by Appellant on merits. The Id. CIT(A) ought to have given opportunity to the Appellant to explain the legal position. 4. The Id. CIT(A) failed to appreciate that the appellant was issued with NEW PAN in place of OLD PAN, and that Appellant is filing return of incomes regularly on the NEW PAN since asst. year 2009-10 onwards. For these and other grounds that may be urged with the leave of the Hon'ble ITAT, it is prayed that the appeal may be allowed." 3. The assessee has raised the following grounds in penalty appeal ITA.No. 1158/Hyd./2025 : 1. "On the facts and in the circumstances of the case, the order of the l....
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....in the books of accounts of the assessee and part of the turnover. The Assessing Officer has made addition in the re-assessment proceedings in the old PAN by taking only the deposit side of the bank without considering the withdrawal from the said bank throughout the year. The learned AR has submitted that the assessee is a sub-contractor to Mid West Caterers Pvt. Ltd., which is one of the contractors to Indian Railways for supply of food on-board in Trains going from Hyderabad to Assam, Patna etc., and back to Hyderabad. All the sales of the assessee were cash sales and for safety reason the cash was deposited in the bank account of the assessee at Gauhati, Patna and Hyderabad. The assessee was withdrawing regularly from the bank account for the expenses relating to the business of the assessee like purchases etc., and, therefore, the turnover declared by the assessee includes all the transactions of the deposit in the bank account. The learned AR has further submitted that the learned CIT(A) has dismissed the appeal filed by the assessee against the assessment order on the technical ground that the assessment order is passed by the Assessing Officer under different PAN, whereas t....
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....ned money u/sec.69A of the Income Tax Act, 1961. Before the learned CIT(A), the assessee explained that the assessee has been regularly filing the return of income under new PAN i.e., BFTPM6705H and also declaring the turnover from the business of sub-contract of catering to the Railways. However, the learned CIT(A) has dismissed the appeal of the assessee on the ground of multiple PAN which is impressible under the provisions of the Income Tax Act in para-2 of the impugned order as under : "2. At the threshold, the appellant contends that PAN AQOPK2022J was the "old" PAN allotted to him, which was reportedly lost, following which a new PAN, namely BFTPM6705H, was obtained. In this regard, the AO is directed to take necessary action as per the provisions of Section 2728 of the Act as the appellant has violated the provisions of Section 139A(7) of the Act. It has been further submitted that the appellant has since been regularly filing income tax retums under the new PAN, copies of which for AYs 2009-10 to 2011-12 have been annexed as part of the appeal. On this basis, the appellant seeks to justify the maintainability of the present appeal filed under the new PAN-....
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....ssee has already declared the turnover can't be denied without verification of the relevant record and correctness of the claim. Since, the assessment order was passed ex-parte u/sec.144 r.w.s.147 of the Income Tax Act, 1961 and the learned CIT(A) has also not decided the appeal of the assessee on merits, but, dismissed the same on technical ground of holding two PANs and assessment order is passed under the different PAN, whereas, the appeal was filed by the assessee under different PAN. We further note that the Coordinate Bench of this Tribunal in the case of Lova Impex Private Limited, Hyderabad vs., ITO, Ward-15(1), Hyderabad (supra), while considering an identical issue of holding more than one PAN by the assessee has observed as under : "6. We have heard both the parties, perused the material on record and gone through the orders of the authorities below. There is no dispute with regard to the fact that, the appellant company has been allotted PAN AABFL2747E in the status of 'Firm', although, the appellant company is a Private Limited Company incorporated under the Companies Act, 1956. It is also not in dispute that, the appellant company has surrendered the old PAN ....
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....ellant company claims that, the Department mistakenly allotted PAN in the status of 'Firm' and the appellant company has surrendered the said PAN, but, the fact remains that the old PAN is still active. In fact, the Counsel for the Assessee himself admitted the fact that, the appellant company has not carried-out relevant amendments to import and export Code nos. allotted by the DGFT by incorporating new PAN. Since the appellant company has not carried-out relevant amendments by incorporating new PAN in IEC Code, the DGFT has reported import and export transactions under old PAN to the Income Tax Department. The Department on the basis of information received from the DGFT has issued notice to the appellant company u/sec.148A of the Act, but, the assessee neither responded nor filed any details. Therefore, the Assessing Officer has passed the best judgment assessment order u/sec.144 r.w.s.143(3) of the Income Tax Act, 1961 for both the assessment years and made additions towards transactions reported by the DGFT. Since the appellant company has already filed return of income under new PAN AAACL8515G for both the assessment years and further for both the assessment years, the Depart....