In the case of Chandra Kant Kandlal Sheth vs Union of India (2002) 175 CTR (Cal) 216, the Calcutta High Court said though there was no time limit for issuing a permanent account number (PAN) and card, it was essential for the income-tax department to issue these within a prescribed period, and three months could be considered as the maximum period.
The petition was filed for not being granted a permanent account number under Section 139A of the Income Tax Act, 1961, by the petitioner-assessee till the date of the petition. The application was filed on September 28, 2000, in the prescribed form No 49A under the Act.
The petitioner said non-issue of a permanent account number and card was affecting his business and social status. On behalf of the income-tax department, it was submitted because the application had to be scrutinised it was taking time. It was also suggested that the petition could be treated as a representation.
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The court did not accept the suggestion. According to the judge, it is essential for the income-tax department to issue a permanent account number and card within a prescribed period. It is definitely a right of an assessee to have a permanent account number and card when he is a taxpayer.
Under such circumstances, delay in issue of a permanent account number is as good as defeat of such right of an assessee provided under Articles 14 and 19(1)(g) of the Constitution. Referring to Section 139A(1), the court said it had three sub-sections.