Facts of the Case

The petitioner, Rakesh Suri, approached the Delhi High Court by way of a writ petition and an accompanying stay application alleging unnecessary harassment by the Income Tax Department. The grievance arose from issuance of a notice dated 21.11.2025 under Section 142(1) of the Income-tax Act, 1961, requiring the petitioner to file a return in respect of PAN No. AOAPS6867H, whereas the petitioner had consistently been filing returns under PAN No. ALYPS4529D.

The petitioner asserted that he was not using PAN No. AOAPS6867H and had already submitted a reply dated 25.04.2024 requesting the Assessing Officer to merge the two PANs. It was contended that since the petitioner had never used the PAN bearing No. AOAPS6867H, he could not be compelled to file a return under that PAN.

Issues Involved

Whether assessment proceedings could be permitted to continue despite discrepancy in PAN numbers, whether the petitioner could resist compliance on the ground of non-use of one PAN, and whether directions could be issued for cancellation of the duplicate PAN to avoid future complications.

Petitioner’s Arguments

The petitioner submitted that the notice under Section 142(1) was erroneous as it sought compliance under a PAN which he was not using. It was argued that the petitioner had already requested merger of the PANs and that any assessment, addition or reassessment, if warranted, could be carried out under the PAN actually being used by him. The petitioner expressed willingness that any addition relatable to the unused PAN may be made in his hands while completing assessment under the active PAN.

Respondent’s Arguments

The Revenue did not seriously oppose continuation of assessment proceedings and maintained that the Department should be allowed to assess the petitioner in accordance with law, irrespective of PAN discrepancies, so as to protect the interest of the Revenue.

Court Order / Findings

The Delhi High Court noted the petitioner’s assertion that he was not using PAN No. AOAPS6867H and had already requested merger of PANs. Accepting the pragmatic approach suggested by the petitioner, the Court permitted the Assessing Officer to proceed with assessment proceedings under Sections 148/143(3) of the Act, irrespective of either of the PAN numbers reflected in any transaction.

The Court further made it clear that henceforth the petitioner would not be permitted to raise any objection in relation to proceedings initiated by the Department on the ground of PAN discrepancy. The Court also directed the Assessing Officer or the authority issuing PANs to forthwith cancel the petitioner’s PAN bearing No. AOAPS6867H.

In view of these directions, the Court disposed of both the stay application and the writ petition.

Important Clarification

The High Court clarified that the petitioner is barred from raising any future objection relating to PAN discrepancy in respect of assessment or reassessment proceedings. At the same time, the Revenue was granted liberty to seek clarification or recall of the order if any grievance still subsisted.

Final Outcome

The stay application and the writ petition were disposed of. The Assessing Officer was permitted to proceed with assessment proceedings against the petitioner irrespective of PAN discrepancy. The authority concerned was directed to cancel the duplicate PAN No. AOAPS6867H forthwith, and the petitioner was restrained from raising any further objections on the ground of PAN-related issues.

 

Link to download order https://www.mytaxexpert.co.in/uploads/1769504110_RAKESHSURIVsASSISTANTCOMMISSIONEROFINCOMETAXORS..pdf

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