PAN Transfer Changes Jurisdiction Mid-Proceedings: Karnataka HC Orders Bangalore PCIT to Decide Condonation Plea on Merits [Read Order]

The Karnataka High Court held that a change in PAN ( Permanent Accountant Number) jurisdiction during the pendency of proceedings cannot defeat a taxpayer’s claim. The court ordered Bangalore PCIT to which the PAN has transferred to decide the condonation plea.

A petition was filed by Gladiator Commodities Pvt. Ltd., seeking condonation of delay in filing its income tax return for Assessment Year 2020-21 under Section 119(2)(b) of the Income-tax Act, 1961.

The petitioner had initially approached the PCIT, Bengaluru, with a representation dated 14 December 2021 requesting condonation.

However, the tax department declined to entertain the request, stating that the petitioner’s Permanent Account Number (PAN) fell under the jurisdiction of the PCIT, Central-2, Kolkata, and advised the petitioner to approach the appropriate jurisdictional authority.

During the pendency of the writ proceedings before the High Court, the petitioner’s PAN jurisdiction was officially transferred from Kolkata to Bengaluru.

Pointing to this new change, the petitioner asked to cancel the previous notice and requested that the Bengaluru PCIT be directed to officially look into their request for a delay excuse.

Justice S. Sunil Dutt Yadav observed that the representation filed by the petitioner was a request for condonation of delay, which is to be adjudicated by the competent authority under Section 119(2)(b).

Once the PAN stood transferred to Bengaluru, the jurisdictional authority competent to decide the matter was the PCIT at Bengaluru. Therefore, the earlier rejection on jurisdictional grounds could no longer be sustained.

Accordingly, the High Court disposed of the petition by directing the Bengaluru PCIT to consider and decide the petitioner’s condonation application in accordance with law.

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