Change of address in PAN Card not result change in Jurisdictional Assessing Officer automatically – High Court
In a recent judgment, Hon’ble Patna High Court has held that change of address in PAN data base only facilitates service of notice in the changed address and it does not automatically result change in Jurisdictional Assessing Officer
ABCAUS Case Law Citation:
4203 (2024) (08) abcaus.in HC
In the instant case, the question raised before the Hon’ble High Court was whether a change in address in the Permanent Account Number (PAN) Card would automatically result in a change in the Jurisdictional Assessing Officer (JAO).
The Petitioner was doing his business in Bihar and the address declared to the Income Tax Department was also the same. Later, the petitioner changed the address in his PAN to Delhi, to which location he has shifted his business.
The case of the assessee was selected for scrutiny. On issuance of notice under Section 143(2) of the Income Tax Act, 1961 (the Act), the Chartered Accountant of the assessee sought for transfer of JAO from Bihar to New Delhi. Subsequently the petitioner was issued notices also in his New Delhi address.
However, the petitioner then was issued with a notice under Section 148A followed with an order and notice under Section 148A(d) of the Act. The petitioner’s contention was that the AO who had issued the notice did not have jurisdiction to assess the petitioner.
The Department stated that the transfer of JAO had not been effected and the mere change of address in the PAN card would not facilitate the transfer of JAO. It was further contended that in the regime of on-line filing, return of income can be filed from anywhere in the country. However, when on-line filing is made, of the returns as obtained from the portal of the Department, the JAO is specifically indicated, which should have cautioned the petitioner and he should have applied for change of JAO with the Principal Commissioner of Income Tax Department and obtained an order under Section 127 of the Act.
The Petitioner had relied upon the judgment of the Madras High Court wherein assessment was made by the AO other than JAO. It was held that an alternate assessing authority assuming jurisdiction of the petitioners’ file can be only by transfer of the file and such power of transfer is to be exercised by the Director General or Chief Commissioner or Commissioner, after recording reasons for such transfer and after hearing the assessee concerned.
The Hon’ble High Court observed that the Hon’ble Madras High Court specifically referred to Rule 127 (2) of the Income Tax Rules, which stipulated that the addresses to which notices/summons/ requisitions/order/any other communication under the Act may be delivered or transmitted is the address available; in the PAN at the place of the addressee or that available in the income tax returns to which communication relates or that available in the last income tax return furnished by the assessee or in the case of the assessee being a company, address of the registered office as available on the website of the Ministry of Corporate Affairs.
The Hon’ble High Court further observed that Hon’ble Allahabad High Court had in a similar case, found the jurisdiction to be absent when the assessee had shifted his principal place of business to New Delhi and requested for change of his JAO from Lucknow to New Delhi.
The Hon’ble High Court concurred with the judgment of the Hon’ble Madras High Court that the JAO is under an obligation to communicate the factum of change in jurisdiction, if an objection is raised by the assessee, to the Superior Officer. However, in the instant case, though a request for transfer of jurisdiction, is said to have been filed before the JAO, there is nothing indicating that the matter was followed up. In fact, the appeal to the Commissioner indicated the Assessing Officer to be the one who issued the impugned notice.
The Hon’ble High Court further noted that the petitioner had raised a question of jurisdiction before the Appellate Authority. However, the appeal was allowed on merits and there was no consideration on the question of jurisdiction.
The Hon’ble High Court further observed that was nothing to indicate that the petitioner had filed an objection regarding jurisdiction before the JAO. While the petitioner had asserted that he had changed the PAN, there is nothing stated as to whether he had made a request for such change of jurisdiction of the JAO, which definitely has to be ordered under Section 127.
Further, it was observed that the petitioner did not contended that he did not receive the notices issued under Section 148A. In fact, the order passed under Section 148A(d) indicated that the petitioner when he received the show cause notice first, sought for time and then did not respond.
The Hon’ble High Court opined that the petitioner had not objected to the jurisdiction and petitioner did not have a contention as to any returns having been filed before an officer at New Delhi.
The Hon’ble High Court further opined that, no doubt, the returns are filed on-line but it indicates the JAO. The change of address in PAN data base only facilitates service of notice in the changed address. In the above factual circumstances, the rigor of Section 124(3) applies squarely on the petitioner.
The Hon’ble High Court also observed that petitioner was faced with Section 148 notice and the assessment would be done in a faceless manner, without reference to the JAO. In that event there was no prejudice caused to the petitioner. Even if the JAO at Delhi had issued the order under Section 148A, the matter would have to be considered only under the faceless Scheme.
The Hon’ble High Court also referred to the clarification issued by CBDT by way of frequently asked questions (FAQ), which is available on e-filing portal. The relevant FAQs states the procedure to be followed as under:
“4. I have moved to a different city/state, do I need to change my AO?
Yes. When you shift your permanent address or residential address from one state to another, it is necessary to get your PAN migrated to the new AO. Although the Income Tax Department endeavours to provide taxpayers with all necessary services online, on rare occasions you may need to contact your AO. Thus, it is in your interest to get your PAN migrated to the proper jurisdictional AO, so you can easily reach him/her when the need arises.
6. What should I do to migrate my PAN to a new AO?
You need to file an application for migrating your PAN to your current jurisdictional AO. The process involves:
1. Write an application to your current AO stating the reason for change as address change.
2. Write an application to the new AO, requesting him/her to apply to the existing AO for the change.
3. The current AO has to accept this application.
4. Once approved, the application is forwarded to the Income Tax Commissioner.
5. After approval from the Commissioner, the AO is changed.
You are required to make a written request to your existing AO for migrating your PAN to the new Assessing Officer (AO) based on your new address.”
The Hon’ble High Court stated that obviously, the petitioner had not applied to any A.O. in New Delhi so as to assume jurisdiction in the case of the assessee. Leaving liberty to apply for such change of jurisdiction.
Accordingly, the Hon’ble High Court declined to interfere with the show cause notice issued under Section 148 of the Act.
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