Income Tax Dept Issues Suo Motu New PAN to Existing PAN Holder: Patna HC Invalidates New PAN and Quashes Reassessment Orders

The Patna High Court has quashed reassessment orders issued by the Income Tax Department after issuing a new Permanent Account Number (PAN) to an existing taxpayer. The case involved a situation where the Income Tax Department issued a new PAN without the taxpayer’s consent, leading to incorrect reassessment. The court ruled that the issuance of a new PAN to an existing taxpayer was invalid and ordered the cancellation of the reassessment proceedings. The ruling emphasizes the importance of accurate PAN records and the need for the department to follow due process when making changes to taxpayer details. It serves as a reminder that reassessments based on incorrect information are unlawful and must be annulled.