Hotel cook faces Rs 4 cr tax demand, but he alleges PAN misuse; what Delhi HC ruled

What happens if your PAN Card is misused and the entry shows up in your Form 26AS, prompting an income tax notice and tax demand way above your salary?In one such case a man received a tax notice along with a penalty claim for purported cash sales worth Rs 24.62 crore. Incidentally, the man earned a salary that was not even taxable. Here’s how the case unfolded:What the case is aboutIn 2024, a cook employed at a 5-star hotel in Delhi received an income tax notice demanding nearly Rs 4 crore in tax, along with a penalty for under-reporting income.The notice alleged that the man had made cash sales worth Rs 24.62 crore through a company dealing in packing materials.He immediately checked his Form 26AS to understand why such a large transaction was linked to his tax records.Also Read | Husband and wife sell property; Income Tax dept alleges Rs…