2022 (11) TMI 1407 - HC - Income Tax

Reopening Order u/s 148A(d) passed in different PAN number as already been surrendered by the petitioners and proper intimation was give to the respondent Department in this regard - Income Tax Authority submits that the petitioners had obtained two PAN numbers and the proceedings has been initiated relating to the PAN number which was very much valid during the transactions - HELD THAT - As Petitioners are given liberty to make an appropriate representation before the respondent, Income Tax Authority concerned for redressal of its grievances by urging the points raised in this writ petition. Such representation shall be filed by the petitioners within two weeks from date and if such representation is made by the petitioners within the time stipulated herein, the same shall be considered and disposed of in accordance with law by passing a reasoned and speaking order and after giving an opportunity of hearing to the petitioners or its authorised representative within four weeks from the date of receipt of such representation. Till the disposal of such representation to be made by the petitioner, there shall be an order of status quo with regard to the impugned order under Section 148A(d) of the Act dated 30th April, 2022 for a period of eight weeks from date.

Summary

Issues:
Challenge to impugned order under Section 148A(d) of the Income Tax Act, 1961 due to use of different PAN number.

Analysis:
The petitioners challenged the impugned order dated 13th April, 2022, under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2015-2016, citing that the order was passed using a different PAN number that had already been surrendered by them. The petitioners had informed the respondent Department about surrendering the PAN number before the order was passed. The respondent, represented by Mr. Rai, argued that the petitioners had two PAN numbers, and the proceedings were initiated using the PAN number valid during the transactions in question, highlighting the presence of different names in both PAN numbers.

The Court, after considering the facts and circumstances, granted the petitioners the liberty to submit a representation before the concerned Income Tax Authority to address their grievances raised in the writ petition. The petitioners were directed to file this representation within two weeks, and if done so within the stipulated time, it would be reviewed and decided upon in accordance with the law. The petitioners or their authorized representative were to be given an opportunity of hearing within four weeks from the receipt of the representation.

During the period until the representation was disposed of, a status quo order was issued regarding the impugned order under Section 148A(d) of the Act dated 30th April, 2022, for eight weeks. However, if the petitioners failed to submit the representation within the specified timeframe, the order would lose its effect. The writ petition was disposed of with these directions and observations, providing a clear timeline and process for addressing the concerns raised by the petitioners.