SHREE VIJAYALAXMI URBAN CO-OP. CREDIT SOCIETY LTD., V. THE ADDITIONAL/ JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX

WP/105619/2022

AI Insights

The case involves Shree Vijayalaxmi Urban Co-op. Credit Society Ltd., which transitioned from being registered under the Karnataka Co-operative Societies Act, 1959 to the Karnataka Souhard Act, 1997, resulting in the issuance of a new PAN card. Despite this change, the Income Tax Department continued to issue notices based on the old PAN number, leading to the filing of a Writ Petition under Articles 226 and 227 of the Constitution of India. The petitioner argued that all transactions were accounted for under the new PAN, and the old PAN had been officially surrendered. The respondents contended that the notices were correctly issued as the department had not been informed of the change in PAN.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 747507 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Karnataka Co-operative Societies Act, 1959, Karnataka Souhard Act, 1997
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; ROOPA ANAVEKAR
• Assessee Lawyers: SANGRAM KULKARNI
• Keywords: Faceless assessment; Income Tax; PAN card; Surrender of PAN; Writ petition; Reassessment Year
• Section: 148; 144B; 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 105619 OF 2022 (T-IT) BETWEEN: SHREE VIJAYALAXMI URBAN CO-OP. CREDIT SOCIETY LTD., OPP. RAYA MATH, MALMADDI, DHARWAD-580 007. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. SHRI. MANOJ S/O GANAPATRAO JOSHI, AGE: 54 YEARS, OCC: SERVICE, R/O: DHARWAD. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI., ADVOCATE) AND: 1. THE ADDITIONAL/ JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTER, NEW DELHI-110 001. 2. THE INCOME TAX OFFICER WARD 1(1), HUBLI, C.R.BUILDING, NAVANAGAR, HUBBALLI-580 025. …RESPONDENTS (BY SRI. M.THIRUMALESH AND MIS. ROOPA ANAVEKAR., ADVOCATES) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Ms.Roopa Anavekar., counsel for the respondents have appeared in person. Sri.M.Thirumalesh., counsel for the respondents has appeared through video conferencing. 2. The short facts are these: The petitioner is an Urban Credit Society and was earlier registered under Karnataka Co-operative Societies Act, 1959. The petitioner had obtained a PAN Card bearing No.AADFS9937M for the Society. The petitioner later got itself converted into Shree Vijayalaxmi Urban Credit Souhard Sahakari Ltd., as per the Karnataka Souhard Act, 1997. Because of the conversion of the Society under the Souhard Act, the petitioner obtained a new PAN Card bearing No.AAEAS0544G. Thereafter, the petitioner stopped filing its income tax returns under the old PAN Card as it had - 3 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 surrendered the same to the ITO, Hubli on receipt of the new card. As the matter stood thus, the Income-tax Officer 2(1) Navanagar, Hubli issued a letter to the petitioner on 07.03.2012 calling upon the petitioner to explain reasons for non-filing of return for the Reassessment Year 2010-11 relating to old Pan Number AADFS9937M. The petitioner replied to the said letter on 15.03.2012 informing that the old PAN card has been surrendered and the income tax return has been filed by quoting the new PAN Card. Subsequently, another letter dated 17.10.2013 was issued to the petitioner by the ITO Hubli for the non-filing of return of income for the Reassessment Years 2010-11 and 2011-12. The petitioner replied on 21.10.2013 which was received by the ITO Hubli on 22.10.2013. Similarly, another letter dated 04.02.2016 was issued to the petitioner seeking an explanation for the non-filing of the return of income for Reassessment Years 2013-14 and 2014- 15. The petitioner replied to the said letter on 09.02.2016 which was received by the ITO, Hubli on 10.02.2016. On 17.02.2017, the petitioner sent a letter to the ITO, Ward 2(3), Hubli requesting to deactivate the old PAN card. - 4 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 In the year 2019, the petitioner addressed a letter to the ITO Ward 2(3) Navanagar, Hubli stating that no action has been taken by the department for cancelling the old PAN card issued to the petitioner. On 06.04.2021, the second respondent issued a notice to the petitioner under Section 148 of the Income Tax Act by mentioning the old PAN card number. On 24.09.2021, the petitioner filed its reply to the said notice stating that it is not using the old PAN card and it has already surrendered the same after receipt of the new PAN card and all the transactions relating to the petitioner have been mentioned in the books of accounts and the returns of income have also been filed regularly by mentioning the new PAN number. However, the second respondent without taking into consideration the surrender of the old PAN card, went ahead to pass the order under Section 148A(d) of the Act on 25.07.2022 and issued notice under Section 148 of the Act. The first respondent issued a notice under Section 144B of the Act on 02.11.2022. Hence, the petitioner has filed the captioned Writ Petition under Articles 226 and 227 of the Constitution of India on several grounds as set out in the Memorandum of Writ Petition. - 5 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 3. Counsel Sri.Sangram S.Kulkarni., in presenting his arguments strenuously urged that all the transactions of the Society have been accounted for in the books of accounts and audited reports and income tax returns have been filed with new PAN number. However, the department has issued notice to the old PAN number. Hence, he submits that an opportunity may be granted for the petitioner to give a reply to the notice. Counsel, therefore, submits that the Writ Petition may be allowed. By way of reply to this contention, counsel Sri.M.Thirumalesh., vehemently contends that the department has issued notice to the PAN which is available in their records and the bank account of the petitioner Society is still linked with the old PAN number. He argued by saying that the petitioner has not brought to the notice of the department about the change in PAN number and it has not proved its case. Hence, he justified the action of the department. Counsel, therefore, submits that the Writ Petition is devoid of merits and the same may be dismissed. 4. Heard the contentions and perused the Writ papers with care. - 6 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 5. The order passed under Section 148A(d) of the Income Tax Act, 1961 is furnished along with the Writ Petition and the same is marked as Annexure-H. A perusal of the same reveals that the order is passed for the Assessment Year 2014- 15 by mentioning the PAN bearing No.AADFS9937M, which according to the petitioner is an old PAN number. Suffice it to note that the department has issued a notice to the PAN which is available in their record. However, the petitioner contends that there was a change in the PAN number back in the year 2012. Hence, this Court considers it proper to direct the petitioner to give all the details about the change in the PAN number before the second respondent/ jurisdictional officer. Therefore, the matter requires a remand. 6. The Writ of Certiorari is ordered. The order dated 25.07.2022 passed by the second respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & Letter No: ITBA/COM/F/17/2022-23/1044047322(1) for the Assessment Year 2014-15 vide Annexure-H, the Notice dated 26.07.2022 issued under Section 148 of the Income Tax Act, 1961 bearing No: ITBA/AST/M/148_1/2022-23/1044079908(1) for the Assessment Year 2014-15 vide Annexure-J and the - 7 - NC: 2024:KHC-D:14162 WP No. 105619 of 2022 notice dated 02.11.2022 issued by the first respondent in DIN & Letter No: ITBA/AST/S/61/2022-23/1046775728(1) for the Assessment Year 2014-15 vide Annexure-K are quashed. The matter is remanded to the second respondent to the stage of giving added/additional reply to 148A(b) notice. The second respondent must provide an opportunity of a personal hearing to the petitioner and thereafter, pass orders as per the law. This Court has not expressed any opinion on the merits of the case. 7. Resultantly, the Writ Petition is allowed and remanded. Because of the disposal of the Writ Petition, pending interlocutory applications if any stand disposed of. Sd/- (JYOTI MULIMANI) JUDGE MRP,TKN LIST NO.: 1 SL NO.: 54 "