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2022 Supreme(MP) 607
High Court of Madhya Pradesh
Vivek Rusia, Amar Nath (Kesharwani), JJ.
RAMCHANDRA s/o JETHANANDJI HARYANI – APPELLANT
Versus
UNION OF INDIA & ORS. – RESPONDENTS
W. P. No. 10302 of 2022
Decided On : 22-08-2022
Possession of multiple PAN cards and the practical problems faced due to their activation and deactivation.
Headnote:
PAN Card Issue - Income Tax - Section 139A, Section 272B - The court discussed the provisions of Section 139A and Section 272B of the Income Tax Act, 1961, which mandate the allotment of a Permanent Account Number (PAN) and prohibit the possession of multiple PAN cards. The court highlighted the petitioner's inability to have two PAN cards and the practical problems faced due to the deactivation and activation of PAN cards. The court directed the petitioner to submit a detailed representation to the Income Tax Commissioner for resolution.
Fact of the Case:
The petitioner sought the activation of an erroneously cancelled PAN and the cancellation of another PAN. The petitioner had surrendered a new PAN card but it was activated, leading to complications in filing income tax returns.
Finding of the Court:
The court directed the petitioner to submit a detailed representation to the Income Tax Commissioner for resolution of the issue.
Issues: Deactivation and activation of PAN cards, complications in filing income tax returns, possession of multiple PAN cards.
Ratio Decidendi: The court emphasized the provisions of Section 139A and Section 272B of the Income Tax Act, 1961, and the practical problems faced by the petitioner due to the possession of multiple PAN cards.
Final Decision: The petition was disposed of with a direction to the petitioner to submit a detailed representation to the Income Tax Commissioner for resolution.
O R D E R The petitioner has filed the present writ petition under Article 226 of the Constitution of India seeking the following reliefs:-
“7.1. That, the instant petition may kindly be allowed and the respondents may kindly be directed to activate the erroneously and illegally cancelled PAN bearing No.ABDPH0428F allotted to the petitioner under section 139A of the Act of 1961 enabling the petitioner to file his ITRs in accordance with law;
7.2. That, the respondents may further be directed to cancel the PAN bearing No.AAGPH0406B illegally and erroneously activated by the respondent No.3 for no justified reasons;
7.3. Any other relief which this Hon’ble Court may deem fit in the light of equity, justice and good conscience may also be granted in favour of the petitioner.”
2. According to the petitioner, Income Tax Department issued a PAN Card to the petitioner bearing Permanent Account Number and submitted an application on 18.01.2017 before the concerned Income Tax Officer for surrendering new PAN Card bearing Permanent Account Number AAGPH0406B. According to the petitioner, upon receiving the said application, the respondents have cancelled the PAN-AAGPH0406B. According to the petitioner, he has never used PAN-AAGPH0406B in filing any of the Income Tax Returns or in any transaction with the Government Department.
3. The petitioner has been served with a show-cause notice by the respondents on 23.03.2022 under Section 148A(b) of the Income Tax Act, 1961 (in short The Act of 1961) by respondent No.3 alleging that he had made transactions by using PAN-AAGPH0406B without disclosing to the Income Tax Department. The etitioner has submitted a reply to the respondents and the said proceedings are still pending against him.
4. During the pendency of the above proceedings, the respondents have cancelled PAN-ABDPH0428F (old) and activated PAN -AAGPH0406B (new). The petitioner has approached this Court seeking directions to the respondents to cancel PAN -AAGPH0406B (new) and to activate PAN-ABDPH0428F (old) so that he may file Income Tax Returns for this Financial Year.
5. Vide order dated 02-08-2022, Ms. Veena Mandlik was directed to seek instructions in the matter. Learned counsel submits that the petitioner has quoted PAN-AAGPH0406B for depositing an amount of Rs.1,42,47,800/- in IDBI Bank. The petitioner did not ABDPH0428F and he is filing Income Tax Returns since 2011 quoting this PAN. The petitioner admits that by mistake he submitted an application for the issuance of a new PAN Card, and accordingly, a new PAN Card bearing Permanent Account Number AAGPH0406B has been issued. Later on, he realized his mistake disclose the said fact in the returns submitted during FY 2017 – 2019 and AY – 2018 – 19. Therefore, the proceedings have been initiated under Section 148 of the Act of 1961. Learned counsel further submits that in view of provisions of Section 139A & 272B of the Act of 1961, no one is permitted to have two PAN Card. Since the assessment proceedings are pending in respect of PAN Card bearing No.AAGPH0406B, therefore, the respondents have rightly activated the same, and the petitioner can file ITRs quoting this PAN i.e. second PAN.
6. Shri Khandelwal, learned counsel for the petitioner submits that the petitioner has been filling the Income Tax Returns for the last ten years quoting PAN-ABDPH0428F(old) and now this PAN has been deactivated, therefore, he is unable to file Income Tax Returns. All business transactions are held up because of the deactivation of PAN-ABDPH0428F.
7. Heard learned counsel for the parties at length and perused the record.
8. Section 139A of the Act of 1961 mandates that every citizen shall have a Permanent Account Number if his total income exceeds the maximum amount which is not chargeable to income tax. Sub-section (4) of Section 139A authorizes a person for allotment of a PAN under a new series and upon allotment of such PAN to a person, the earlier PAN, if any to him, shall cease to have effect
