High Court Overturns Order Due to PAN Categorization Error, Permits Return Filing

Thiruvanmiyur Milk Consumer’s Co-operative Society Limited Vs Assessing Officer (Madras High Court)

Facts:

1. Four writ petitions challenge assessment and penalty orders citing breach of natural justice principles.
2. The petitioner, a Co-operative Society, received PAN AACCT9874A erroneously, leading to misclassification as a company by the Income Tax Department.
3. The erroneous PAN caused the petitioner’s inability to file returns from 2013-2014 to 2018-2019 and avail exemptions.

Observations:

1. Rectified PAN AAGAT8456Q obtained by surrendering the old PAN allows electronic filing for assessment years 2013-2018.
2. Learned counsel for the respondent confirms the petitioner’s acquisition of the new PAN and advocates electronic filing using the new PAN.
3. The assessment orders stemmed from non-compliance in filing returns due to the PAN misclassification.
4. The rectified PAN enables the petitioner to file returns electronically for the relevant assessment years.

Conclusion:

1. The High Court quashes assessment and penalty orders, remanding the matter for reconsideration by the assessing officer.
2. The petitioner must file returns for assessment years 2013-2018 within two weeks.
3. The assessing officer is directed to provide a reasonable opportunity, including a personal hearing, and issue fresh assessment orders within three months of receiving the returns.
4. The writ petitions are allowed without costs, and connected miscellaneous petitions are closed.

This legal ruling underscores the importance of accurate documentation and rectification of administrative errors to ensure fair treatment under the law. It sets a precedent for similar cases, emphasizing the judiciary’s role in upholding procedural integrity and fairness in legal proceedings.

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