Department can’t suo motu issue a new PAN when assesseee have a valid PAN under which returns are filed.
In a recent judgment, the Hon’ble Patna High Court quashed re-assessment order as notices and the assessment order showed a new PAN number suo motu issued by the department despite that the assesseee had a valid PAN under which she was filing return.
ABCAUS Case Law Citation:
4481 (2025) (03) abcaus.in HC
In the instant case, the Petitioner assessee had filed a Writ Petition challenging the demand raised under a new PAN number distinct and different from the PAN number under which the petitioner had been filing return, which was validly issued to her by the department.
For the relevant Assessment Year, the petitioner filed her returns showing the PAN number issued to her. The petitioner was issued with a show-cause notice for the said assessment year calling for details with respect to certain purchases made of land. The petitioner replied to the notice by filing requisite documents.
However, after that the assessee received a demand notice and came to know that her case was reopened and re-assessment order had been passed raising a demand.
As the Petitioner/assessee was not aware of any notices issued to her for the proceedings stated to have been passed against her, she applied for a certified copy of the notices issued to her namely. notices issued under Section 148, under section 142(1) and the show-cause notice under Section 144 of the Income Tax Act, 1961 (the Act) and the assessment order pursuant to which notice of demand was raised. A penalty order had also been passed pursuant to the assessment made on alleged escapement of tax.
Before the Hon’ble High Court, the petitioner contended that the none of the notices were ever served on her and that the procedure prescribed under Section 148A had not been complied with.
The Revenue submitted that the Principal Chief Commissioner of Income Tax had directed issuance of Section 148 notices under the Act against various persons, one of whom was the petitioner. It was stated that said list was prepared on the basis of the directions issued by the Central Board of Direct Taxes.
The Hon’ble High Court observed that The CBDT directions relied upon by the Revenue were with respect to handling of Non-PAN cases. Further, the various notices issued and the order passed showed a different PAN number from that issued to the petitioner, as evident from the copy of return produced. The notices and the assessment order showed a PAN number which was suo motu issued by the department. There was no reason to suo motu issue a PAN number to the petitioner, who had a valid PAN under which she was filing return; which she had specifically mentioned in her reply.
The Hon’ble High Court opined that the CBDT directions which were meant for non-PAN cases did not apply to the petitioner at all, and in any event, Section 148A proceedings had not been followed.
Accordingly, the Hon’ble High Court set aside the assessment order passed under section 147, the demand notice and also the penalty order. The Department was also directed to cancel the suo motu PAN issued by the department, since the petitioner had already been issued with a PAN number.
Download Full Judgment Click Here >>
- ITR-1 Sahaj and ITR-4 Sugam has been notified for AY 2025-26
- SC upheld constitutional validity to section 34, 47 & 58 of Consumer Protection Act 2019
- Appointment of internal auditor in GCE, Keonjhar for FYs 2009-10 to 2023-24
- Empanelment of Stock & Receivable Auditors in State Bank Of India, Thiruvananthapuram.
- If a contribution is not voluntary, it cannot be taxed as income u/s 11 r.w.s. 12(1) – ITAT
