ITAT Condones Delay in Appeal Filing After Assessee Misses Notices Due to Change in PAN

The ITAT Bangalore condoned delays in filing appeals, holding that the assessee’s shift to a new PAN constituted sufficient cause for missing notices under the old PAN. The Tribunal restored the matters to CIT(A) for fresh adjudication on merits after examining supporting documents.

The assessee, M/s Hunnur Souhard Credit Sahakari Sangh Niyamit, being a cooperative society, had made cash deposits into its bank account during the year in consideration. Noting the same, the tax authorities had reopened the assessee’s case since no income tax returns were found under the old PAN, treating the deposits as unexplained money under Section 69A of the Income Tax Act.

The assessee explained that it had later obtained a new PAN under a different status and had been filing income tax returns using the new PAN. Further claimed that all the impugned cash deposits were properly recorded in the books of accounts and disclosed in the returns filed under the new PAN. Because of this change, the assessee stated that it did not notice the notices and assessment orders issued under the old PAN.

When the assessee approached, the ITAT Ahmedabad observed that when a taxpayer starts using a new PAN, it is possible that communications issued under the old PAN may not be noticed. Considering the same, the tribunal condoned the delay of 142 and 141 days in filing the appeal and remanded the case to the CIT(A) for fresh consideration. The assessee is directed to furnish all relevant documents during the re-hearing. In conclusion, both the appeals are allowed for statistical purposes.