PAN Misuse Cases Rise: Mumbai Homemaker Fights Back in Tax Tribunal
PAN Misuse Cases Rise: Mumbai Homemaker Fights Back in Tax Tribunal
Senior citizen overcomes legal hurdles to clear her name in property sale case
June 19, 2024
A Mumbai-based homemaker and senior citizen has successfully litigated up to the Income-Tax Appellate Tribunal (ITAT) over the alleged misuse of her PAN card after a tax officer accused her of selling immovable property worth Rs 1.3 crore in 2010-11 and treated this as her income.
The woman, who is Illiterate and battling cancer, failed to respond to initial income tax notices. During a recent ITAT hearing, her counsel argued that her PAN was misused in the property registration process.
The Central Board of Direct Taxes (CBDT) emphasized caution in sharing PAN information. “Individuals should restrain from sharing their PAN information/PAN card unless mandated by government guidelines,” said the CBDT in a response to a news agency. The CBDT also highlighted the importance of linking PAN with Aadhaar to prevent misuse and advised filing a police complaint in suspected cases of misuse.
A tax partner of a reputed company, called for a rethink by the I-T department on relying solely on information filed by various agencies.
The AIS provides comprehensive information received from reporting entities, such as banks and property registrars, including details on bank interest, dividends, and property transactions. Patel recommended immediate feedback on any wrong entries in the AIS and filing an FIR with the police if the mistake is not corrected.
A police complaint can also serve as a protective measure during tax assessments. The I-T department should provide a feature on its website to report misuse.
The CBDT explained that unless the PAN holder reports the issue to the police and it is investigated, no action can be taken by the I-T department based on the reporting entity’s confirmation. Additionally, the CBDT noted that a PAN is not deactivated upon the holder’s death to allow the completion of pending I-T proceedings.
Family members or legal heirs must inform the jurisdictional assessing officer of the death, along with the PAN card and death certificate, for the officer to mark the death against the PAN.
