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There Is No Time Limit For Issuing Pan

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T N Pandey BUSINESS STANDARD
Last Updated : Feb 06 2013 | 10:59 PM IST

I had applied for a permanent account number (PAN) more than a year ago. The authorities have not got back to me so far. Is there no time limit for issuing PANs?

Of late, the income tax department has been striving hard to issue PANs and cards expeditiously. You may approach the commissioner of income tax in your area for help.

There is no time limit prescribed under the Income Tax Act, 1961. However, the Calcutta High Court, in the case of Chandrakant Kandlal Sheth vs UOI & ORS (2002) 255 ITR 407, construed a three-month period as the maximum period for allotting PANs and cards because revenue-earning authorities normally follow a period of one quarter of an year for the purpose of collection of tax, cess, fees, duties, etc.

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Our business extends to 14 branches, and therefore, the records are voluminous but uncomplicated. We have filed all the details that the assessing officer had asked us to file, but despite extending full co-operation the officer has ordered a special audit in our case under Section 142 (2A) of the Income Tax Act, 1961. Kindly advise whether his order is legally tenable.

Sub-section (2A) of Section 142 stipulates that an order for special audit can be passed if "having regard to the nature and complexity of the accounts and interest of the revenue", it is necessary to pass an order for special audit.

In your case, since no complexity is involved prima facie, there does not appear to be any justification for getting special audit done merely because the records are voluminous.

However, in the case of Living Media Ltd vs CIT & Anr (2002) 255 ITR 268, the Supreme Court held that the voluminous details filed by the assessee prima facie supported the assessing authority's opinion for conducting special audit. The order of the High Court directing a special audit was for no reason other than complexity of appellant's accounts.

I have received arrears of salary for the past six years, which have been assessed in the year of receipt, subjecting me to a huge tax liability. My requests to the assessing officer to spread over the payments to the respective years and then work out the amount of tax payable have not evoked any response. On the contrary, I am being pressed for paying the demanded amount. What is the remedy? Should I file a writ petition before the High Court?

I suggest you approach a commissioner of income tax. I am sure he will help you get some action initiated under Section 89(1) and expedite your case.

I will not advise you to go in for the writ. In the case of Shantilal Bagora & ORS vs State Bank of Indore & ORS (2002) 255 ITR 60, the Madhya Pradesh High Court dismissed a writ petition seeking relief under Section 89(1) of the Income Tax Act, 1961.

According to the court, this Section itself has provided a statutory remedy for the petitioner (as an assessee) to make an application to his assessing officer claiming such a relief, which he is entitled to claim under Section 89(1). On satisfying the assessing authority, he is entitled to get relief.

Once an application to that effect is made by the assessee, it is for the assessing officer to examine the case in the light of what he has stated in the application and then to find out whether he is entitled to claim the benefit under Section 891(1).

In case the assessing officer feels that the assessee is entitled to get the benefit, it is his duty to grant the relief as prescribed under the Act. The writ court cannot examine the factual aspect of each assessee as to whether he is entitled to get this benefit or not, it being a matter of factual adjudication. It is for this reason that the task is entrusted to the assessing officer in the section.

The assessing officer has issued a notice to me under Section 148 of the Income Tax Act, 1961, for reopening an assessment already completed. I am of the firm view that the officer does not have any solid ground to reopen the assessment. He has merely issued the notice on suspicion. Can this notice be challenged in the court by a writ petition?

No, it can

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First Published: Mar 17 2003 | 12:00 AM IST

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