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Facts
The assessee-trust, registered under section 12A and claiming exemption under section 11, inadvertently obtained a second PAN (AAATT1151H) in addition to its primary PAN (AACCT1067D). Three branches incorrectly used the second PAN in their bank accounts. The Assessing Officer (AO) treated income related to these accounts as unexplained and made additions under section 69A.
Held
The Tribunal noted that while the second PAN was active, the assessee claimed all income was reported under the primary PAN. It directed the assessee to surrender the active second PAN and instructed the AO to verify if all income from branches was accounted for under the primary PAN. If confirmed, the additions would be deleted.
Key Issues
Whether the AO was justified in making additions for unexplained income when the assessee claimed all income was reported under a different, albeit also active, PAN, and the issue of double PAN allotment.
Sections Cited
250, 147, 144, 69A, 11, 12, 12AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: S/SHRI SANJAY GARG & NARENDRA PRASAD SINHA
Per Sanjay Garg, Judicial Member
The above appeal has been filed by the assessee against order passed by the Ld.Commissioner of Income-Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “ld.CIT(A)] dated04.2.2025 under section 250 of the Income Tax Act, 1961 ("the Act" for short) arising out of the order of passed by the Assessing Officer (hereinafter referred to as “AO”) under section 147 read with section 144 of the Act pertaining to Assessment Year 2012- 13.
The assessee has raised the following grounds of appeal:
2 1. The Ld. CIT (Appeals) has erred in law and in fact in stating that "the claim of the appellant that the PAN AATT1151H had been surrendered is misleading and incorrect" and rejecting the appeal without considering the merits of the case.
2. The Assessing Officer has erred in law in making assessment u/s. 144 of the Act even if the details and documents asked by the Assessing officer have been submitted during the assessment proceedings.
3. The Assessing Officer has also erred in law in making assessment of income of Rs.3,02,52,656/- u/s. 69A of the Act.
4. The Assessing Officer also erred in law in making addition of income towards cash deposits of Rs.81,36,929 5. The Assessing Officer has also erred in law in making addition of income towards cash deposit and time deposit of Rs.2,11,27,778/-.
The Assessing Officer has also erred in law in making addition of income towards interest as per Form 26AS Rs.9,87,949/-.
7. The Assessing Officer has erred in law in not giving exemption u/s. 11 and u/s. 12 of the Act even though the trust is registered u/s. 12AA of the Act.
The Assessing Officer also erred in law in levy of tax at special rate of 60% on assessed income of the trust.
The order of Assessing officer is illegal against the natural justice and good conscience.
The brief facts of the case are that the assessee-trust is registered under section 12A of the Income Tax Act, 1961 and has been claiming exemption under section 11 of the Act. The assessee has been filing its income tax returns under the PAN No.AACCT1067D. Due to some inadvertence, the assessee had applied for another PAN, and the assessee was granted another PAN No.AAATT1151H. Since the assessee was allotted double PAN, therefore, the assessee surrendered the PAN No. AAATT151H.
The assessee trust is in the activity of providing education and has various branches throughout India. Due to some confusion/inadvertence, three branches of the assessee trust had given PAN No.AAATT1151H in their respective bank accounts. The 3 AO noted that the said PAN AAATT1151H of the assessee was still active. The AO noted that the assessee was supposed to file the return relating to the income under the PAN No. AAATT1151H. Since the assessee had not filed return relating to the receipts in the bank account linked with the PAN No.AAATT1151H, the AO treated the cash deposits, time deposits and receipts shown in Form No.26AS totaling to Rs.3,02,52,656/- shown under the PAN No. AAATT1151H as unexplained income of the assessee under section 69A of the Act, and made addition of the said amount into the income of the assessee, without giving any benefit of deduction under section 11 of the Act. The ld.CIT(A) confirmed the so addition made by the AO.
We have heard rival contentions and gone through the record. The plea of the ld.counsel for the assessee is that all the income/receipts of the branches of the assessee, have been duly taken into account for the purpose of taxation, and for filing of the return of income under the PAN No. AACCT1067D. That other PAN No. AAATT1151H was surrendered and that the said PAN number was wrongly given in their bank account by three branches of the assessee-trust. However, the income relating to the said three branches has been duly considered in the return of income of the assessee filed under PAN No. AACCT1067D. The lower authorities rejected the claim of the assessee, observing that the PAN No. AAATT1151H was still active, and that the assessee had failed to prove that same was surrendered long back. Nonetheless, the fact is that both the PANs have been allotted to the assessee-trust. Another undisputed fact on record is that the assessee is filing its return of income under PAN: AACCT1067D. It is the case of the assessee that the income/receipts relating to all the Branches of the assessee have been duly taken into account under PAN No. AACCT1067D.
4 Under the circumstances, there is no evasion of tax, on the part of the assessee. Though, the assessee’s case is that another PAN No. AAATT1151H has been surrendered long back, however, if it is still active, then the assessee is directed to immediately surrender the same. The AO is directed to verify whether income/receipt of the assessee from all the Branches have been taken into account for the purpose of filing return of income under the PAN No. AACCT1067D. If the claim of the assessee is found correct, then no addition will survive, and the impugned addition will be deleted. The concerned Income Tax Authorities are also directed to cancel the PAN : AAATT1151H after receipt of a formal request from the assessee in this respect.
With the above observation, appeal of the assessee is treated as allowed for statistical purpose. Order pronounced on 4th June, 2025.