2017 (11) TMI 737 - HC - Income Tax

Requirement of AADHAAR number in filing return of income - W.P. praying for a direction to the third respondent to allow her to file income tax returns for the assessment year 2017-18 either manually or through e-filing facility without insisting for production of an aadhar number/card or enrollment identity as defined under Section 139AA - Held that - It is seen that in identical circumstances, one of the assessee s by name Prasanth Sugathan moved the High Court of Kerala by filing petition wherein a similar relief was sought and the High Court of Kerala, by an order dated 04.8.2017, issued a direction to the third respondent therein to allow the petitioner therein to file income tax returns manually without insisting upon the aadhar number or card or enrollment number pending disposal of the writ petition. As inclined to grant a similar relief, since today being the last date for filing the income tax returns. If the income tax returns are filed belatedly and if, ultimately, the matter is decided by the Constitution Bench of the Hon ble Supreme Court against the petitioner, then she may be liable for payment of interest for belated payment of tax. The balance of convenience is in favour of the petitioner for the grant of appropriate interim order. Accordingly, there will be an interim direction to the third respondent to permit the petitioner to file her income tax returns for the assessment year 2017-18 either manually or through appropriate e-filing facility without insisting for the aadhar number and/or enrollment ID. Notice to the respondents is accepted by Mr.Navin Durai Babu, learned Standing Counsel for the Revenue. He seeks time to get instructions and file counter.

Summary

Issues:
1. Petitioner seeking direction to file income tax returns without Aadhar number/card.
2. Interpretation of Section 139AA of the Income Tax Act, 1961.
3. Reference to the Supreme Court's decision in Binoy Viswam Vs. Union of India.
4. Comparison with a similar case in the High Court of Kerala.
5. Granting interim relief due to pending Constitution Bench decision.

Analysis:
1. The petitioner, a practicing advocate, approached the court seeking permission to file income tax returns for the assessment year 2017-18 without the requirement of providing an Aadhar number or card. This request was based on the petitioner's argument that the provision of Section 139AA of the Income Tax Act, 1961, should not be enforced strictly.

2. The petitioner relied on the decision of the Hon'ble Supreme Court in the case of Binoy Viswam Vs. Union of India, where it was highlighted that the constitutionality of Section 139AA, concerning Aadhar linkage, is yet to be fully examined in the context of Article 21 of the Constitution, particularly regarding the right to privacy and human dignity. The Supreme Court had partially stayed the provision pending further deliberation.

3. Notably, a similar case was presented in the High Court of Kerala by an assessee named Prasanth Sugathan, seeking relief from the Aadhar requirement for filing income tax returns. The High Court of Kerala granted interim relief to the petitioner in that case, allowing manual filing without Aadhar details until the matter was resolved.

4. Considering the impending hearing by a Constitution Bench on the matter and the urgency due to the deadline for filing income tax returns, the court in the present case decided to grant similar interim relief to the petitioner. The judge acknowledged that if the final decision goes against the petitioner, there might be consequences such as interest for belated payment of tax.

5. Consequently, an interim direction was issued to the third respondent to permit the petitioner to file income tax returns for the assessment year 2017-18 either manually or through e-filing without the mandatory requirement of Aadhar details. The respondents were given notice, and the matter was scheduled for further proceedings on a specified date. The decision aimed to balance the petitioner's need for immediate relief with the pending legal considerations before the Constitution Bench.