Delhi High Court Allows Income Tax Assessment Despite Notice Under Unused PAN, Orders Its Cancellation

The Delhi High Court recently (January 13) allowed income tax assessment proceedings to continue against a taxpayer despite him holding more than one Permanent Account Number (PAN) and directed that the unused PAN be cancelled. 

A Division Bench of Justices Dinesh Mehta and Vinod Kumar was dealing with a writ petition wherein the taxpayer challenged the continuation of assessment proceedings on the ground that notices had been issued under a PAN different from the one currently claimed by him.

Petitioner-taxpayer contended that the Assessing Officer (AO) was harassing him unnecessarily by asking him to furnish a return qua the unused PAN when he had already requested the AO to merge both the aforementioned PAN numbers.

He further submitted that the Department may be allowed to make addition, if any found with respect to the unused PAN, while making assessment qua his used PAN no.

Hearing this, the court permitted the AO to proceed with the assessment proceedings under Section 148/143(3) of the Act of 1961 against the petitioner, irrespective of either of the PAN numbers given in any transaction.

“It is hereby made clear that henceforth, the petitioner shall not be allowed to raise any objection in relation to the proceedings initiated by the respondents-Department against the petitioner irrespective of the PAN number,” the Court said.

It, however, further directed the AO, or the Authority issuing PAN, to forthwith cancel the petitioner's unused PAN.

Case title: Rakesh Suri v. Assistant Commissioner Of Income Tax & Ors.

Citation: 2026 LLBiz HC(DEL) 48

Case Number: W P (C) 4901/2025

For Petitioner: Advocate S. Krishnan, Adv.

For Respondent: Advocate Puneet Rai, SSC, with Advocates Sahvini Kr., Rishabh Nangia & Mr. Gibran, JSC.