SANJAY KUMAR vs. PRINCIPAL COMMISSIONER OF INCOME TAX, PANCHKULA

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CWP/8664/2021HC Punjab & HaryanaPHHC01039361202126 August 2021Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE GIRISH AGNIHOTRI2 pages
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What did the High Court hold?

The High Court held that the rejection of the Vivad se Vishwas Scheme application was not appropriate. The Court noted that the impugned order itself suggested that the PAN number should be corrected first. The Court found that this was not a case where the assessee was trying to benefit from inaction. It was undisputed that an appeal had been pending for three years without objection and pertained to the assessment of the deceased-father's income. Therefore, the Court allowed the petition, directing the respondents to consider the PAN Number mentioned in the representation (Annexure P-11) as the correct PAN for the appeal, thereby enabling the consideration of the Vivad se Vishwas Scheme application.

What were the facts?

The petitioner, Sanjay Kumar, filed a writ petition challenging the rejection of his application under the Vivad se Vishwas Scheme, 2020. The rejection was based on the ground that no appeal was pending against the PAN of the deceased-father whose income was assessed. The petitioner had inadvertently mentioned his own PAN instead of his deceased father's PAN in an appeal filed against the assessment order. Upon realizing the mistake, the petitioner submitted a representation to correct the PAN to that of his deceased father. However, this representation was not considered, and the Vivad se Vishwas application was rejected on the same ground.

What were the issues?

1. Whether the rejection of the Vivad se Vishwas Scheme application was justified on the ground that the appeal filed by the petitioner did not pertain to the correct PAN of the deceased-father, despite a subsequent representation to correct the PAN. Assessee's contention: The assessee argued that the mistake in mentioning the PAN was inadvertent and that a representation was made to correct it. The appeal had been pending for three years and related to the deceased-father's income. The assessee contended that the benefit of the Vivad se Vishwas Scheme should not be denied due to this procedural error. Revenue's contention: The revenue rejected the application on the ground that no appeal was pending against the PAN of the deceased on the appointed date, implying that the correction of the PAN was a prerequisite for the scheme's applicability.

Which sections of the Income-tax Act were involved?

Vivad se Vishwas Scheme, 2020

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 206 CWP-8664-2021(O&M) Decided on : 26.8.2021 Sanjay Kumar ....Petitioner VS Principal Commissioner of Income Tax ....Respondent CORAM: HON'BLE MR. JUSTICE AJAY TEWARI

HON'BLE MR. JUSTICE GIRISH AGNIHOTRI Present: Ms. Radhika Suri, Senior Advocate with Mr. M.S.Kanda, Advocate for the petitioner. Mr. Yogesh Putney, Sr. Standing counsel for the respondent. **** AJAY TEWARI, J.(Oral) 1. This petition has been filed praying for quashing of the order dated 10.2.2021 (Annexure P-10) vide which the Form-1 dated 10.2.2021 (Annexure P-9) was rejected. 2. The brief facts are that an assessment order was passed against the father of the petitioner (who by then had deceased and had been proceeded against his LRs, one of whom was the petitioner). Against the assessment order, the petitioner filed an appeal, however, inadvertently in that appeal which actually related to the income of his father he mentioned his PAN Number i.e BYDPK3103J rather than mentioning the PAN number DGCPS1268D of the deceased-father whose income had been taxed. 3. Realizing his mistake, on 10.2.2021, by a document Annexure P- 11 he represented to the respondent that this mistake had taken place and ANURADHA 2021.08.31 11:26 I attest to the accuracy and integrity of this document

CWP-8664-2021(O&M) -2- the PAN Number DGCPS1268D of his father be incorporated in the appeal. However, without considering that application the prayer for invoking the Vivad se Vishwas Scheme, 2020 was rejected on the same very ground, viz. that no appeal was pending against the PAN of the deceased on the appointed date. 4. In fact, even in the impugned order it has been mentioned that first the petitioner should get the PAN Number corrected. In our considered opinion, in this view of the matter this is not a case where assessee was trying to take the benefit of inaction on his part. It is not disputed that appeal had been pending for last three years without any objection having been taken and that it is related to the assessment of the income of the deceased-father. 5. In the circumstances, we do not deem it appropriate to deny the benefit of the consideration of the prayer for invoking the Vivad se Vishwas Scheme, 2020. Consequently, the petition is allowed and respondents are directed to consider the PAN Number mentioned in Annexure P-11 as the PAN Number to the appeal. 6. Since the main case has been decided, the pending civil miscellaneous application, if any, also stands disposed of. (AJAY TEWARI)

JUDGE (GIRISH AGNIHOTRI) JUDGE 26.8.2021 anuradha Whether speaking/reasoned - Yes/No Whether reportable -Yes/No ANURADHA 2021.08.31 11:26 I attest to the accuracy and integrity of this document

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