Kerala High Court Quashes Proceedings U/S 148 Of Income Tax Act Initiated Against Cancelled PAN Number

The assessee/petitioner is a co-operative society engaged within the enterprise of offering credit score providers to its members. As per Rule 15 of the Kerala Co-operative Societies Guidelines, the assessee has been categorized as a Major Agricultural Credit score Co-operative Society.

In accordance to the society, they’re entitled to exemption below Part 80P of the Revenue Tax Act, topic to compliance with the situations relevant therein.

Initially, the assessee was allotted with a PAN quantity, and transactions of the assessee had been being carried out utilizing the mentioned PAN. Nonetheless, it was later realized that the PAN allotted to the assessee by the Division was exhibiting the standing of the assessee as an organization and never as a cooperative society.

As a consequence of the identical, the assessee was unable to assert exemption below Part 80P of the Revenue Tax Act, which the assessee was in any other case eligible for.

Due to this fact, on realizing the mentioned mistake, utility was submitted earlier than the assessing officer, for allotment of a recent PAN quantity exhibiting the standing of the assessee as a co-operative society.

Then appearing upon the identical, a recent PAN card was issued. Later, discover below Part 148 of the Revenue Tax Act, 1961 was issued to the assessee by referring to the cancelled PAN card. Finally the mentioned proceedings culminated in evaluation order.

In accordance to the assessee, as all of the notices and the evaluation had been made with particular reference to the PAN card, which was cancelled, the assessee couldn’t successfully contest the matter, and so they had been additionally prevented from pursuing the appellate treatment.

In accordance to the division, the assessee can not declare the advantage of Part 80P, as they did not furnish the returns in respect of the related monetary 12 months.

The bench famous that the particular rivalry of the assessee is that they may not successfully contest the matter attributable to numerous technical causes attributable to discrepancies that arose consequent to the transactions which can be carried out in PAN card which was cancelled and was issued with out exhibiting the precise standing of the assessee as a co-operative society. Although they tried to file an attraction in opposition to the evaluation order, the identical couldn’t be uploaded.

The bench acknowledged that it’s a truth that every one the notices and proceedings had been issued by solely referring to the PAN card, which stood cancelled as of the date of the search notices/proceedings.