One Society – Two PAN – Two returns – Two Rival Groups : Interesting Issues Never Ends

CALCUTTA HIGH COURT

ANANDA MARGA PRACARAKA SANGHA & ANOTHER VERSUS UNION OF INDIA & OTHERS

No.- W. P. 17205 (W) of 2019

Dated.- November 27, 2019

Misuse of PAN – Rival group has been using the same Permanent Account Number (PAN) and hacking into the user name of the petitioner-society – HELD THAT:- The undisputed facts in this case are that there is a long running dispute between the petitioner and the respondent no.7 and both these groups are filing annual returns before the Registrar of Societies. It is to be noted that there is no provision under the Income Tax Act, 1961 that allows both these groups to file income tax returns for a particular financial year having same Permanent Account Number.

Under the Income Tax Act, 1961 only one Permanent Account Number is issued to an entity and only one return can be filed. The factual aspect with regard to which group has been issued the original PAN has to be ascertained by the Income Tax authorities. Furthermore, the Income Tax authorities may reject the returns that have been filed by the group that is not authorised to do so.

The respondent no.6 being the AO of the petitioner no.1 is directed to grant an opportunity of hearing to the petitioner and the respondent no.7, and thereafter, pass a reasoned order within a time-bound period. It is made clear that the AO shall examine the issue as to which group is authorised to file the return as per the PAN that has been issued by the Income Tax authorities.

The parties shall be at liberty to produce all documents with regard to the title suits that indicate as to who is controlling the management of the society. Upon passing of the order, the AO shall cancel the PAN card issued to the unauthorised/wrong party and reject the return filed by them. The reasoned order should be communicated to both the parties within a period of two weeks from the date of passing of the reasoned order.

AO is requested to complete the above proceeding within a period of eight weeks from the date of communication of this order.

Conclusions :

AO shall cancel the PAN card issued to the unauthorised/wrong party and reject the return filed by them.