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Changed your address? Update New Address in PAN card as notice received in Old Address will also be valid: Supreme Court


Changed your address? Update New Address in PAN card as notice received in Old Address will also be valid: Supreme Court

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Changed your address? Update New Address in PAN card as notice received in Old Address will also be valid: Supreme Court

 

Has your address mentioned in the PAN database changed? It is important to get the address in PAN database updated, If this is not done. The Income Tax Assessing Officer would be right in sending notice of Scrutiny under Section 143 (2) of the Income Tax Act 1961 on the old address and you cannot escape by claiming you didn’t receive the notice on your new address, and complete the assessment according to a latest Supreme Court judgement.

 

In PCIT vs. I-Ven Interactive Limited, the Supreme Court’s judgement dated 18-10-2019, says, “Mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient. It is required to be noted that notices under Section143(2) of the 1961 Act (Scrutiny Notices) are issued on selection of case generated under automated system of the Department which picks up the address of the assessee from the database of the PAN. Therefore, the change of address in the database of PAN is must…”

 

This is a major relief for the Income Tax Department. With this, it has set aside orders passed by the High Court, Commissioner of Income Tax (CIT-Appeals) and the Income Tax Appellate Tribunal ITAT), holding the assessment order bad in law on the ground that notices were served at the old address. There are many litigation based on servicing of Notice in old address. All those litigation will now be in favour of department.

 

Brief Fact of Case

The assessee filed return of income under E Filing, and return was Processed under Section 143(1) of the Income Tax Act, 1961. A notice under Section 143(2) of the 1961 Act was issued at address available as per the PAN database.

 

However, it was the case on behalf of the assessee that the said notice was not served upon the assessee as the assessee changed its name and address and shifted to new address prior thereto and therefore the said notice was not served upon the assessee and by the time when subsequently the notices were served upon the assessee, notice under Section 143(2) of the 1961 Act was barred by the period prescribed in proviso to Section 143(2) of the 1961 Act and therefore the assessment order is bad in law.

 

The C.I.T (Appeals) observed that as the subsequent service of notice under Section 143(2) of the 1961 Act was beyond the period of limitation prescribed under the proviso to Section 143 of the 1961 Act and earlier no notices were served upon the assessee and/or received by the assessee as the same were sent at the old address and in the meantime companyassessee changed its address and therefore the assessment order was bad in law. The same was view of ITAT and High Court.

 

The Judgement and Significant Observations

 

1) The Assessing Officer sent the notice under Section 143(2) of the 1961 Act to the assessee at the available address as per the PAN database within time limit prescribed in Section 143(2) of the 1961 Act.

 

2) There was no intimation by the assessee to the Assessing Officer with respect to change of address. Notice under Section 143(2) of the 1961 Act was sent to the assessee on the available address as per the PAN database so it is complied with  relevant provisions of the 1961 Act, more particularly Section 143(2) of the 1961 Act.

 

3) The Assessee was not able to produce record showing the intimation given to AO for change in address or informed AO of changed in Address

 

4) Though Change in address was intimated to ROC Registrar of Companies, and though Assessment Order of previous AY were send at new address. However this was not sufficient

 

5) In absence of any specific intimation to the Assessing Officer with respect to change in address and/or change in the name of the assessee, the Assessing Officer would be justified in sending the notice at the available address mentioned in the PAN database of the assessee

 

6) It is required to be noted that notices under Section 143(2) of the 1961 Act are issued on selection of case generated under automated system of the Department which picks up the address of the assessee from the database of the PAN. Therefore, the Assessing Officer cannot be said to have committed any error and in fact the Assessing Officer was justified in sending the notice at the address as per the PAN database.

 

7) SC is of the opinion that mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient.

 

8) Now with E Assessment the problem will be much bigger when individuals will start receiving notices on Email Ids, and intimation will be send through SMS on mobile. It is very important for all to update the email id and mobile number. Also provide additional email Id and mobile Number of your CAs, so that in case you miss to read the email, income tax notices are marked to another email.

 

How to update PAN address

Currently, PAN data can be updated online by going to the ‘Update PAN/Aadhaar Details’ section of the Income Tax e-filing website or click on NSDL site https://tin.tin.nsdl.com/pan/changerequest.html for change in PAN Request

 

Read and Download the judgement of CIVIL APPEAL NO.8132 OF 2019 (Arising out of SLP(C) No.3530/2019)

Principal Commissioner of Income Tax, Mumbai …Appellant Versus M/s IVen-Interactive Limited, Mumbai …Respondent NEW DELHI OCTOBER 18, 2019.

Principal Commissioner of Income Tax Ms IVen Interactive Limited SC Judgement_18-Oct-2019-20191106113601.pdf

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