Senior Citizen Overcomes Legal Hurdles to Clear Her Name in Property Sale Case
In a significant victory, a Mumbai-based homemaker and senior citizen successfully litigated her case up to the Income-Tax Appellate Tribunal (ITAT) over the alleged misuse of her Permanent Account Number (PAN). The case arose after a tax officer accused her of selling immovable property worth Rs 1.3 crore in 2010-11, attributing this as her income.
The woman, who is illiterate and battling cancer, initially failed to respond to income tax notices due to her circumstances. However, during a recent ITAT hearing, her counsel argued that her PAN had been misused in the property registration process.
Increasing Incidents of PAN Misuse
This case underscores the rising issue of PAN misuse, prompting the Central Board of Direct Taxes (CBDT) to emphasize caution. “Individuals should restrain from sharing their PAN information/PAN card unless mandated by government guidelines,” stated 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.
Legal and Protective Measures
Tax experts recommend immediate action if an individual discovers inaccuracies in the Annual Information Statement (AIS), which provides comprehensive details on financial transactions, including property sales. Filing an FIR with the police is crucial if the mistake is not corrected. A police complaint serves as a protective measure during tax assessments and can provide evidence of identity theft or 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.
Recommendations for the I-T Department
A tax partner from a reputed firm suggested that the Income-Tax department should reconsider its reliance solely on information filed by various agencies. The expert recommended that the I-T department provide a feature on its website to report misuse directly, which would streamline the process for taxpayers facing similar issues.
