2023 (10) TMI 135 - HC - Income Tax

Assessment of the assessee trust v/s AOP - Validity of revisional order - petitioner could not upload the returns online as an Association of Persons as petitioner was issued with a wrong PAN No. as a firm and not as an AOP - assessee had earlier registered as a firm and the said firm had subsequently registered as an AOP with a Certification of Exemption obtained u/s 12AA - The attempt in change of the registration was only to get the benefit of a charitable institution - revisional authority in fact found that though the challenge was related to the assessment carried out against the assessee, a firm, who was issued with PAN No. AAGFB5910L but the requisite fee was filed against the new PAN account. The application of the assessee hence was dismissed as not maintainable - HELD THAT - We are not convinced that there is any valid argument against the assessment of the assessee as a firm with PAN No. AAGFB5910L for the year AY 2017-2018. The assessee admits that an application was filed as an AOP but the registration was issued as a firm; which is hard to believe, especially since the assessee claims that from the time of its registration in 2004, the assessee had been regularly filing returns, an authenticated copy of which has not been produced here. The earlier returns filed relatable to the first PAN number issued was as a firm, and not as an AOP. Obviously, in the AY 2015-2016, the assessee filed a fresh application for registering the very same institution as a charitable institution under Section 12AA of the Act, without surrendering the earlier PAN issued in the very same name. This was to avail the benefit of Section 12AA. We are of the opinion that the assessee from the above facts is guilty of misrepresentation and even fraud; prima facie, from the above disclosed facts. We do not say anything about the measure employed for obtaining the registration under Section 12AA, but however, leave it to the Income Tax Officer to take appropriate proceedings As to the challenge against the assessment made, we are convinced that there is absolutely no reason to interfere with the original order or the revisional order.

Summary

Issues Involved:
The issues in this case involve incorrect PAN allocation, assessment against the petitioner, revisional order, change in registration status from firm to AOP, misrepresentation, and challenge to assessment orders.

Assessment and Revisional Order:
The petitioner, a registered society, faced assessment issues due to the allocation of a wrong PAN as a firm instead of an AOP. Despite being issued a new PAN as an AOP, assessments were made against the petitioner under both the old and new PAN numbers. The Income Tax Department argued that the change in registration was solely for the benefit of being considered a charitable institution.

Assessment Details and Findings:
Upon reviewing the case records, it was evident that the petitioner initially applied as an AOP, received a new PAN, and filed returns accordingly. However, a new application was filed without surrendering the old PAN, leading to confusion in assessments. The Assessing Officer found discrepancies in income reporting and issued notices for non-filing of returns, particularly focusing on a deposit during the demonetization period. Despite the petitioner's claims, the Assessing Officer deemed the deposit unexplained income and taxed it accordingly.

Revisional Authority's Decision:
The revision filed by the petitioner against the assessment was dismissed by the revisional authority on the grounds that the challenge was related to the assessment as a firm with the old PAN, while the fee was paid under the new PAN account. The revision was deemed not maintainable.

Judicial Findings and Conclusion:
The court rejected the petitioner's arguments, emphasizing that the initial registration was as a firm, not an AOP, despite subsequent attempts to change the status for charitable benefits. The court viewed the petitioner's actions as misrepresentation and potentially fraudulent. Ultimately, the court found no valid reason to interfere with the original or revisional assessment orders, leading to the dismissal of the writ petition.

This comprehensive summary captures the key issues, assessment details, findings, and the court's conclusion from the legal judgment delivered by the Patna High Court.