No PAN invalidation for non linking with Aadhaar-SC Stays the provision. Read Full text of Supreme Court Judgment

No PAN invalidation for non linking with Aadhaar. Supreme Court stays provision for linking of PAN with Aadhaar

No PAN invalidation for non linking with Aadhaar-Supreme Court.

The The Hon’ble Supreme Court of India has pronounced its judgment on the matter on the linking of Aadhaar to Income tax Permanent Account Number (PAN) as per newly inserted section 139AA of the Income tax Act, 1961.

The Court ruled as under:

(i) The Parliament was fully competent to enact Section 139AA of the Income Tax Act, 1961 and its authority to make this law was not diluted by the orders of the Court.

(ii) No  conflict was found between the provisions of Aadhaar Act and Section 139AA of the Income Tax Act inasmuch as when interpreted harmoniously, they operate in distinct fields.

(iii) Section 139AA of the Act is not discriminatory nor it offends equality clause enshrined in Article 14 of the Constitution.

(iv) Section 139AA is also not violative of Article 19(1)(g) of the Constitution insofar as it mandates giving of Aadhaar enrollment number for applying PAN cards in the income tax returns or notified Aadhaar enrollment number to the designated authorities. Further, proviso to sub-section (2) thereof has to be read down to mean that it would operate only prospective.

(v) In view of the petition disputing challenging the provisios as violative of Article 21 of the Constitution which is pending before the Constitution Bench, there shall be a partial stay on the operation of proviso to sub-section (2) of Section 139AA which madates linking of aadhaar and invalidation of PAN otherwise.

Read Full Judgment of the Supreme Court on Aadhaar to PAN Linking Stay Click Here >>

However CBDT has again, post judgment clarified that from 1st July. 2017 Aadhaar is a must for filing income tax return as the Court has given only a partial relief regarding invalidation of PAN only.

Earlier, the hearing was completed on 4th May, 2017 in a batch of petitions filed before the Apex Court challenging the said section 139AA by which quoting Aadhaar in income tax returns has been made mandatory.

The main contentions of the petitioners was that such decision of the Government is contrary to the order of the Supreme Court and also He also is violative of Article 14 and 19(1)(g) of the Constitution of India.

It is notable that in August, 2015, a full Bench of the Hon’ble Supreme Court headed by Justice Chelameswar had ruled that it is not mandatory for a citizen to obtain Aadhaar Card.

On the other hand the Government was contending that the assuarnce given by it that no citizen shall be deprived of any benefit for want of Aadhaar was given before passing of  the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act..

However, today, the Hon’ble Court ruled that persons with PAN but not having Aadhaar Number can also file their Income tax Return and there shall be no invalidation of PAN for non linking of Aadhaar.