Mavoor Gramasree Vanitha Sahakarna Sangha No. 3026 V. The Commissioner of Income Tax and The Income Tax Officer, Ward 2 (3)

WP(C)/1328/2024

AI Insights

The case involves Mavoor Gramasree Vanitha Sahakarna Sangha, a cooperative society, which faced issues related to the Income Tax Department concerning the use of two different PAN cards. Initially, the society was issued a PAN card as 'Body of Individual' and later as 'Association of Persons'. The core issue arose when the society received a notice under Section 148 of the Income Tax Act for the old PAN card, despite having surrendered it and filed returns under the new PAN card. The Income Tax Department maintained that both PAN cards were active and the old PAN card was still relevant for the assessment year 2018-19, leading to an assessment order treating a sum of Rs. 60,66,000 as unexplained money. The society sought relief through this writ petition, which the court addressed by allowing an appeal against the assessment order under the old PAN card.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796684 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: KEERTHIVAS GIRI
• Assessee Lawyers: SANDEEP GOPALAKRISHNAN; JINNU GEORGE; ANJU K; ZAFAR ANTONIO
• Keywords: Appeal; Assessment Order; Income Tax; PAN card; Unexplained money
• Section: 147; 148; 144; 69A; 148A(b)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 17TH DAY OF JANUARY 2024 / 27TH POUSHA, 1945 WP(C) NO. 1328 OF 2024 PETITIONER: MAVOOR GRAMASREE VANITHA SAHAKARNA SANGHA NO. 3026, AGED 46 YEARS, REPRESENTED BY ITS SECRETARY, MS. SHEEJA C. K., W/O. GIRISH KUMAR, KAMBALATH (H), MAVOOR P. O., CALICUT, KERALA, PIN – 673661. BY ADVS. SRI. SANDEEP GOPALAKRISHNAN SMT. JINNU SARA GEORGE SMT. ANJU DAVIS K. SRI. ZAFAR ANTONIO RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, MANANCHIRA, CALICUT, KERALA, PIN – 673001. 2 THE INCOME TAX OFFICER, WARD 2 (3), AAYAKAR BHAVAN, MANANCHIRA, CALICUT, KERALA, PIN – 673001. BY ADVS. SRI. KEERTHIVAS GIRI - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 1328 OF 2024 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No. 1328 of 2024 ------------------------- Dated this the 17th day of January, 2024 JUDGMENT 1. Heard the learned Counsel appearing for the petitioner and respondents. 2. Petitioner is a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. According to the averments in the writ petition, the petitioner works for the betterment empowerment of its female members, providing financial assistance to them. Petitioner was issued a PAN card with No. AAABM2623H. This PAN card was issued as “Body of Individual” and not as “Association of Persons”. The petitioner surrendered the PAN card bearing No. AAABM2623H and applied for new PAN card. The Income Tax Department thereafter issued new PAN card bearing No. AAJAM4041R under the status of “association of persons”. 3. The petitioner had filed return of its income for the assessment year 2019-20 under new PAN Card with No. AAJAM4041R. The petitioner, however, received a notice under Section 148 of the Income Tax Act in respect of the old PAN card for the assessment year 2018-19. Thereafter, an order under under Section 148A(b) of the WP(C) NO. 1328 OF 2024 3 Income Tax Act was passed against the petitioner in respect of the old PAN card. Subsequent proceedings has taken place and assessment order dated 20.03.2023 has been passed. In the said order passed under Section 147 read with Section 144 in respect of the assessment year 2018-19, an amount of Rs. 60,66,000/- has been treated as unexplained money under Section 69A of the Income Tax Act. 4. The learned Counsel for the petitioner submits that the petitioner has surrendered the old PAN card and petitioner is unable to file the appeal in respect of the said assessment order dated 20.03.2023 for which corrigendum was issued on 31.03.2023. 5. On the last date of hearing, i.e. on 15.01.2024, this Court asked the learned Standing Counsel for the respondents to have instructions in the matter. Learned Counsel for the Revenue has got written instructions from the Office of the Principal Commissioner of Income Tax, Kozhikode, which has been handed over to the Court. The instructions received would suggest that both the PAN cards of the petitioner/assessee i.e. AAABM2623H and AAJAM4041R are active as per the ITBA site and the PAN card with No. AAJAM4041R is allotted only on 09.06.2019. 6. It also says that the assessee did not file the return of income for the assessment year 2018-19 when the old PAN card was active WP(C) NO. 1328 OF 2024 4 and new was not issued. The assessee had made cash transactions using the old PAN card i.e. AAABM2623H with Kozhikode District Co- operative Bank and UCO Bank. A notice under Section 148 was served on the assessee on 10.04.2022 by post and by e-mail on 31.03.2022. Subsequently, notice under Section 142(1) was issued. 7. Further it states that the petitioner’s/assessee’s request for deletion of the old pan card could not be considered for the reason that the proceedings are pending against that PAN. Therefore, the old PAN very much in active even now and the petitioner/assessee can file the appeal against the assessment order dated 20.03.2023 before the CIT(A) for which the corrigendum dated 31.03.2023 was issued. 8. Considering the aforesaid instructions as noted above, the writ petition is disposed of with liberty to the petitioner to file appeal against the assessment order dated 20.03.2023 using the old PAN card i.e. AAABM2623H and, if such an appeal is filed, the same shall be proceed with in accordance with the law. The petitioner is required to get registered in the e-filing portal using the old PAN i.e. PAN card bearing No. AAABM2623H. Sd/- DINESH KUMAR SINGH JUDGE Svn WP(C) NO. 1328 OF 2024 5 APPENDIX OF WP(C) 1328/2024 PETITIONER’S EXHIBITS EXHIBIT P1 TRUE COPY OF THE PAN CARD NO. AAABM2623H ISSUED TO THE PETITIONER EXHIBIT P2 TRUE COPY OF THE PAN CARD NO. AAJAM4041R ISSUED TO THE PETITIONER EXHIBIT P3 TRUE COPY OF THE NOTICE U/S. 148 OF THE INCOME TAX ACT 1961 ISSUED TO THE PETITIONER IN THE DEFUNCT PAN: AAABM2623H EXHIBIT P4 TRUE COPY OF THE GRIEVANCE DATED 27.05.2022 FILED BY THE PETITIONER EXHIBIT P4(A) TRUE COPY OF THE GRIEVANCE DATED 17.04.2023 FILED BY THE PETITIONER EXHIBIT P4(B) TRUE COPY OF THE GRIEVANCE DATED 02.05.2023 FILED BY THE PETITIONER EXHIBIT P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 20.03.2023 FOR THE AY 2018 - 19 PASSED BY THE 2ND RESPONDENT U/S. 147 R/W S. 144 OF THE IT ACT 1961 "