TAX on REgualar Assessment
This query is : Resolved
16 September 2010
R/Sir
I had to deposit tax on regular assessment for A.Y 2007-08 when the asseessee was Partnership firm but Now assessee is converted in HUF and Tax is wrongly deposited in the PAN of HUF instead of firm,,, REmedy available???????
I had to deposit tax on regular assessment for A.Y 2007-08 when the asseessee was Partnership firm but Now assessee is converted in HUF and Tax is wrongly deposited in the PAN of HUF instead of firm,,, REmedy available???????
16 September 2010
Write to your AO, with the necessary supportings, he will be able to rectify the error.
01 January 2011
is there any circular/notiication or judgement with regard to this???
Please let me know???
Please let me know???
26 July 2025
Here's what you can do regarding tax deposited under the wrong PAN due to change from Partnership firm to HUF:
---
### Situation Recap:
* Tax was deposited for **AY 2007-08** when the assessee was a **Partnership Firm**.
* Now, the entity has become an **HUF**.
* Tax was mistakenly deposited **under HUF PAN instead of the Firm’s PAN**.
* You want to know the remedy and whether any official circular/judgment exists.
---
### Recommended Remedy:
1. **Write to your Assessing Officer (AO):**
Explain the situation clearly and provide proof of tax payment (challan copy) showing the incorrect PAN used.
2. **Request Correction or Transfer:**
The AO can help **rectify the PAN error** and allocate the tax correctly to the firm’s assessment account. This is often done by processing a **PAN rectification request**.
3. **Submit Supporting Documents:**
* Copy of payment challan
* Proof of conversion from Partnership to HUF (if applicable)
* Correspondence from AO, if any
4. **Follow-up:**
Regularly follow up with AO to ensure correction is processed before filing returns or assessments.
---
### Official Circulars/Notifications:
* There isn’t a **specific circular** that deals exactly with this issue but this is considered a **clerical error** or **data entry mistake** and AO’s have the power under the Income Tax Act to rectify such mistakes (under **Section 154 - Rectification of mistakes**).
* In general, courts have held that genuine mistakes in tax payments or PAN quoting can be corrected through proper application to the tax authorities.
---
### Reference:
* **Section 154 of Income Tax Act**: Provides for rectification of mistakes apparent from the record.
* CBDT (Central Board of Direct Taxes) regularly issues instructions empowering AOs to correct such errors.
---
### Summary:
* Write a letter to AO with full details and challan.
* Request rectification/adjustment of tax payment under correct PAN.
* No specific circular, but AO can rectify under Section 154.
* Keep copies of all communication.
---
If you want, I can help draft the letter/email to the AO for this request.
---
### Situation Recap:
* Tax was deposited for **AY 2007-08** when the assessee was a **Partnership Firm**.
* Now, the entity has become an **HUF**.
* Tax was mistakenly deposited **under HUF PAN instead of the Firm’s PAN**.
* You want to know the remedy and whether any official circular/judgment exists.
---
### Recommended Remedy:
1. **Write to your Assessing Officer (AO):**
Explain the situation clearly and provide proof of tax payment (challan copy) showing the incorrect PAN used.
2. **Request Correction or Transfer:**
The AO can help **rectify the PAN error** and allocate the tax correctly to the firm’s assessment account. This is often done by processing a **PAN rectification request**.
3. **Submit Supporting Documents:**
* Copy of payment challan
* Proof of conversion from Partnership to HUF (if applicable)
* Correspondence from AO, if any
4. **Follow-up:**
Regularly follow up with AO to ensure correction is processed before filing returns or assessments.
---
### Official Circulars/Notifications:
* There isn’t a **specific circular** that deals exactly with this issue but this is considered a **clerical error** or **data entry mistake** and AO’s have the power under the Income Tax Act to rectify such mistakes (under **Section 154 - Rectification of mistakes**).
* In general, courts have held that genuine mistakes in tax payments or PAN quoting can be corrected through proper application to the tax authorities.
---
### Reference:
* **Section 154 of Income Tax Act**: Provides for rectification of mistakes apparent from the record.
* CBDT (Central Board of Direct Taxes) regularly issues instructions empowering AOs to correct such errors.
---
### Summary:
* Write a letter to AO with full details and challan.
* Request rectification/adjustment of tax payment under correct PAN.
* No specific circular, but AO can rectify under Section 154.
* Keep copies of all communication.
---
If you want, I can help draft the letter/email to the AO for this request.
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