The Amritsar Bench Income Tax Appellate Tribunal (ITAT) has directed re-adjudication as the assessee could not be treated as non-filter or undisclosed of tax in return on wrong allotment.
The assessee,Samreen Shafi Chattabal Channa Mohalla was possessing two Permanent Account Numbers bearing number AHCPS0377H and EAHPS5244B. The assessee filed the return in the old PAN, AHCPS0377H for the impugned assessment year. In the HDFC Bank the assessee submitted the new PAN, number EAHPS5244AB.
Accordingly, AO got the information and completed the assessment on the basis of the new PAN, under Section 144 of the Income Tax Act and the addition was determined on 8% net profit under Section 44AD of the Income Tax Act related to deposit and amount deposited cash in bank account during the demonetisation.
Accordingly, the addition was made Under Section 69 of the Income Tax Act.
In the written statement the assessee had submitted that he was a regular taxpayer and filed the return under Section 139 of the Income Tax Act against the old PAN.
Radhey Shyam Jaiswal,on behalf of the revenue vehemently argued and relied on the order of the revenue authorities.
The two-member Bench of M. L. Meena, (Accountant Member) and S.H. Anikesh Banerjee, (Judicial Member) observed that the assessee was allotted two PAN and the assessee was regularly filing the return and declared the income in old PAN.
The Bench allowed the appeal holding that the assessee had never concealed his income or turnover before the revenue authorities and assessee could not be set as a non-filer or undeclared of tax in the return because he had made a wrong allotment of two PANs.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
