INCOME TAX OFFICER, WARDD-3(1)(2), AHMEDABAD, AHMEDABAD vs. RAPID PROCESSORS PRIVATE LIMITED, AHMEDABAD

आयकर अपील सं /ITA No.1483/Ahd/2024 – Asst.Year 2017-18 2. आयकर अपील सं /ITA No.1490/Ahd/2024 – Asst.Year 2017-18

Income Tax Officer Ward-3(1)(2) Ahmedabad-380 015 (Old) ITO, Wd-3(1)(3), Ahmedabad

Rapid Processors Private Limited C/o. M.S. Chhajed & Co. CA, “Kamal Shanti” Nr. Sardar Patel Statue Ahmedabad – 380 014

Rapid Processors Private Limited C/o. M.S. Chhajed & Co. CA, “Kamal Shanti” Nr. Sardar Patel Statue Ahmedabad – 380 014

Income Tax Officer Ward-3(1)(2) Ahmedabad-380 015 (Old) ITO, Wd-3(1)(3), Ahmedabad थायी लेखा सं./PAN: AACCR 7250 E

Following are the grounds of appeal(s) before us:

The order passed by the Ld. CIT (A) is against law, equity and justice. 2. The CIT (A) has erred in law and on facts in considering the validity of assessment order passed by Ld. AO without issuing notice u/s 143(2) of the Act.

The CIT (A) has erred in law and in considering the facts of invoking section 115BBE of the Act when transactions occurred prior to insertion of provision on statute.

The CIT (A) has erred in law and on facts in upholding the validity of order passed by Ld. AO without having juri iction and contrary to instruction of CBDT.

The CIT (A) has erred in law and on facts in upholding addition made by the Ld. A.O. u/s 69A of the Act of Rs.30,00,000/-.

The appellant Craves liberty to add, amends, alter or modify all or any grounds of appeal before final appeal.

During the course of hearing, it was observed that the AO passed the assessment order under PAN AADCR8817L, while the CIT(A) adjudicated the appeal under a different PAN AACCR7250E. Furthermore, the assessee filed Form 35 for the appeal before the CIT(A) under PAN AACCR7250E, which was not the PAN under which the assessment order was framed. This discrepancy raises a juri ictional issue regarding the maintainability of the appeal before the CIT(A).

The Departmental Representative (DR) agreed that the order passed by CIT(A) has certain juri ictional issues. It was further pointed out that the assessee was aware of the fact that it holds two PANs, as it is evident from the reply received from the bank in response to notice issued under Section 133(6) of the Act. The bank provided the KYC details and copy of resolution, copy of PAN card (AADCR8817L) and copy of PAN cards of both the directors. The Authorized Representative (AR) of the assessee has admitted to assessee holding two PANs, which is a serious violation under the Act.

As per Section 139A(7) of the Act, a person is prohibited from having more than one PAN, and any violation attracts penalties under Section 272B of the Act, which prescribes a fine of Rs.10,000/-. The existence of multiple PANs raises concerns regarding potential tax evasion, misrepresentation of financial transactions, and improper filing of tax returns. Further it is noted

1. Given that the assessment order was passed under PAN AADCR8817L, but the appeal was adjudicated under PAN AACCR7250E, the CIT(A) lacked juri iction to entertain the appeal. The order passed by the CIT(A) is, therefore, rendered invalid and is liable to be set aside.

2. In light of the above, the matter is restored to the file of the JAO for a fresh examination of all banking transactions under both PANs and to determine the implications of the assessee holding multiple PANs. The JAO shall verify all bank accounts linked to both PANs and ensure that a consolidated assessment is carried out in accordance with law.

3. The merits of the case are not being considered at this stage, as the juri ictional issue itself warrants restoration to the JAO. The JAO shall grant the assessee a proper opportunity to present its case and provide necessary explanations.

4. In view of the above, the order of the CIT(A) is set aside, and the matter is restored to the JAO for fresh adjudication.

In the result, the appeal of the Revenue and the appeal of the assessee both are allowed for statistical purposes.

अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु( / Concerned CIT 4. आयकर आयु( ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण