Pan-Aadhaar linkage mandatory for filing income tax returns from AY 2019- 20: Union of India & others vs. Shreya Sen & others (SC)

CASE NO.-34292/2018 DATE -4.02.2019

Fact of the case

  1. Shreya Sen, a taxpayer is the assessee in the present case who submitted I.T Reurn for the assessment year 2018-19 without linking Aadhaar & PAN No.
  2. The revenue department appealed to the high court regarding the aforesaid problem.
  3. The High Court had permitted the respondents, Shreya Sen to file the Income Tax Return for the Assessment Year 2018-19 without linkage of their Aadhar and PAN numbers and it was also directed that the Income Tax Department would not insist on production of their number of Aadhar enrollment.
  4. The revenue department again appealed to the Supreme Court against the order passed by High Court.

Pan-Aadhaar Linkage Mandatory

Decision of the Case

The Supreme Court observed the following:-
  1. The High Court passed the order the when the aforesaid matter was pending consideration in the Supreme Court.
  2. Thereafter the Supreme Court passed the order to linkage PAN with Aadhaar mandatory.
  3. The respondents had already submitted I.T Return without linking Aadhaar as per direction of High Court and the assessment has also been completed. So it need not be implemented for the assessment year 2018-19.
  4. As per section 139AA inserted in the financial act 2017 to the Income Tax Act mandating quoting of Aadhaar or enrollment of ID of Aadhaar application form for filling of I.T Return.
  5. Two judges Bench of Supreme Court upheld the constitutional validity of the said provision & reversed the order of High Court allowing the tax payer to file I. T return without linking PAN with Aadhaar

pan Aadhar link online    Link Aadhaar

Source:- Tax Bulletin 34 of ICMAI

Section 139AA of Income Tax Act' 1961

Quoting of Aadhaar number.—
(1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—
          (i) in the application form for allotment of permanent account number;
          (ii) in the return of income:
Provided that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.

(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette:

Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number.

(3) The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.

Explanation.—For the purposes of this section, the expressions—
        (i)"Aadhaar number", "Enrolment" and "resident" shall have the same meanings respectively assigned to them in clauses (a), (m) and (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);
         (ii)"Enrolment ID" means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment.'.