HC Allows Income Tax Proceedings Despite Dual PAN Dispute; Orders Cancellation of Duplicate PAN

The petitioner, Rakesh Suri, approached the Hon’ble High Court complaining of harassment by the Income Tax Department after a notice under Section 142(1) was issued seeking return filing against a PAN which, according to him, was not in use.

The petitioner stated that he had always filed returns under a different PAN and had already requested the Department to merge the two PANs. He submitted that since the disputed PAN was never used by him, he could not be compelled to file returns under that number. At the same time, he expressed no objection if any tax addition relating to the unused PAN was assessed in his regular PAN.

Main Issue: Whether assessment proceedings can be stalled merely because notices were issued under an unused or duplicate PAN, and how the Department should proceed in cases involving multiple PANs issued to the same assessee.

HC’s Order: The Hon’ble High Court permitted the Assessing Officer to continue assessment or reassessment proceedings under Sections 148/143(3) against the petitioner, irrespective of which PAN appeared in the underlying transactions. The Court held that the assessee cannot avoid or object to tax proceedings on the ground of a duplicate PAN. It was clarified that the petitioner would not be allowed to raise future objections relating to PAN discrepancies.

The Court directed the concerned authority to cancel the duplicate PAN forthwith. In view of these directions, both the interim application and the writ petition were disposed of.

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