‘Aadhaar mandatory for Income Tax returns’

Justice TS Sivagnanam while dismissing the petition on the basis that the Supreme Court had not stayed the proviso of 139 AA of the Income Tax Act, said, “On a reading of the judgment it would clearly show that the Supreme Court has not stayed the Proviso to Sub-Section (2) of Section 139AA of the act and the partial stay would be applicable only to facilitate the other transactions, which are mentioned in Rule 114B of the rules, which pertain to transactions, in relation to which, PAN is to be quoted in all documents for the purpose of Clause (C) of Sub-Section (5) of Section 139A of the Act.” 

“Therefore, to state that the partial stay granted by the Supreme Court would endure to the benefit of the petitioner even for filing income tax returns is a plea, which is not sustainable and is liable to be rejected,” the judge held. 

However, in his earlier judgment where he held that Aadhaar need not be quoted to file I-T returns had relied on the Supreme Court judgment which said, “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.” 

But now, on realising that the same order also states, “However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139(2), their PAN cards be not treated as invalid for the time being. It is only to facilitate other transactions which are mentioned in Rule 114B of the rules.”

Also, according to Justice Sivagnanam Rule 114B of the Income Tax Rules mandates the quoting of PAN number for a multitude of transactions and hence the partial stay envisioned by the Supreme Court was limited to transactions under Rule 114B.