GURU SHOES TECH PRIVATE LIMITED,AGRA vs. ITO, CIRCLE 2(1)(1), AGRA, AGRA

The appeal in ITA No. 234/AGR/2026 for AY 2016-17, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 25.07.2024 against the order of assessment passed u/s 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 09.03.2022 by the Assessing Officer, ITO, Circle-2(1)(1), Agra (hereinafter referred to as ‘ld. AO’).

At the outset, I find there is delay in filing of appeal by the assessee before this Tribunal by 535 days. Considering the reasons adduced in the condonation petition, I hold that assessee was prevented from sufficient cause in not filing the appeal in time. In the interest of substantial justice, I am inclined to condone the delay and admit the appeal of the assessee for adjudication. The ld AR before me, vehemently argued Ground Nos. 3 and 4 stating that the entire assessment need to be quashed in view of the fact

I have heard the rival submissions and perused the material available on record. The assessee is a private limited company since its inception. But the PAN was allotted by the Income Tax Department in the status of firm i.e. AADFG4470F. Noting the mistake committed by the Department, the assessee had surrendered this wrong PAN on 06.06.2011. The evidence in this regard is enclosed in page 3 of the paper book. The assessee had obtained a new PAN in the status of company i.e. AAECG2431L. The assessee has been filing its income tax returns only with the new PAN obtained in the name of the company which is correct. I find that the proceedings for AY 2018-19 were sought to be reopened u/s 148A of the Act in the name of old PAN i.e. AADFG4470F. During the course of that reassessment proceedings for AY 2018-19, the assessee submitted that the wrong PAN allotted in firm’s category had already been surrendered on 06.06.2011 and requested for dropping the proceedings. The AO took due cognizance of this and dropped the reassessment proceedings for AY 2018-19 vide order dated 31.03.2023. The evidence in this regard is enclosed in pages 28 to 32 of the paper book. Hence, it is very clear and duly established that PAN allotted in firm’s category for assessee company was duly surrendered on 06.06.2011 itself by the assessee and it is a non-existent PAN when proceedings stood initiated on the assessee for AY 2016-17, i.e. year under consideration before me. Hence, I have no hesitation to quash the assessment proceedings as it was framed on a non-existent PAN. Accordingly, Ground Nos. 3 and 4 raised by the assessee are allowed.

Since, the entire assessment is quashed, the adjudication of other grounds become academic in nature and they are left open.

In the result, the appeal of the assessee is partly allowed.