Delhi HC says Separate PAN Alone Cannot Secure Refund of Tax Recovery

In Surender Gupta, a partnership firm sought refund of ₹1 crore paid towards the outstanding income-tax liabilities of its former proprietor, who continued as a 1% partner. Although the firm had a separate PAN, the Delhi High Court found that the Department had not been informed of the change in business constitution and that the funds had been tendered voluntarily. It declined to intervene in what it considered essentially an inter se dispute between the partners and dismissed the writ petition.