2018 (7) TMI 1739 - HC - Income Tax

Permission to file Income Tax returns for AY 2017-2018 without complying with the condition of providing Aadhar Card registration number or Aadhar Card Enrolment number - Held that - Similar direction as in the case of Mukul Talwar (2018 (5) TMI 1741 - DELHI HIGH COURT) is warranted in this case. Accordingly, the petitioners shall be permitted to file their returns, for AY 2018-2019, without any insistence of linkage of their Aadhar and their PAN numbers and without instance of production of their proof of Aadhar enrolment. In case the returns are filed within the time prescribed by law, without such linkage, they shall be processed in accordance with law and in accordance with CBDT circular dated 27.03.2018 as extended on 30.06.2018. This court is of the opinion that at least for the period till 31.03.2019, the CBDT shall issue an appropriate direction, and also create a platform by amending the digital form of substituting them properly to enable opt out from the mandatory requirement of having to furnish Aadhar Registration or Aadhar linkage, for the duration, the exemption subsists i.e. till 31.03.2019.

Summary

Issues:
1. Challenge to Rule 12(3) of Income Tax Rules as violative of Article 14 of the Constitution.
2. Extending time for linking PAN with Aadhaar for filing tax returns.
3. Compliance with Section 139AA of the Income Tax Act, 1961.
4. Suspension of Aadhaar linkage requirement with PAN.
5. Receipt of emails from Income Tax Authorities post CBDT Circular of 30.06.2018.

Issue 1: The petitioners challenged Rule 12(3) of the Income Tax Rules, alleging it violated Article 14 of the Constitution, contending that the refusal to accept income tax returns without Aadhaar linkage was arbitrary. They relied on a CBDT circular extending the deadline for linking PAN with Aadhaar. The Punjab and Haryana High Court had accepted a similar statement, directing returns to be accepted without Aadhaar. The High Court directed the respondents to accept returns without Aadhaar linkage, in line with the circular, if filed before 30.06.2018.

Issue 2: The CBDT extended the deadline for linking PAN with Aadhaar for filing tax returns to 31.03.2019 through an order under Section 119 of the Income Tax Act, 1961. The High Court, considering the submissions and the record, directed that petitioners could file returns for AY 2018-2019 without Aadhaar-PAN linkage, and these returns would be processed in accordance with the law and the CBDT circular.

Issue 3: The High Court considered the compliance with Section 139AA of the Income Tax Act, 1961, emphasizing the context of the Supreme Court's judgments and the CBDT circular extending the deadline for Aadhaar-PAN linkage. It upheld the previous order, directing the expedited processing of returns subject to the outcome of connected matters.

Issue 4: Post the CBDT Circular of 30.06.2018 suspending the Aadhaar linkage requirement till 31.03.2019, the petitioners received emails from Income Tax Authorities suggesting approaching the court for relief. The High Court directed the CBDT to issue appropriate directions and amend digital platforms to allow opting out from the Aadhaar linkage requirement till 31.03.2019.

Issue 5: The High Court noted the receipt of emails from Income Tax Authorities post the CBDT Circular of 30.06.2018, indicating the need to approach the court for relief regarding Aadhaar linkage. It directed the CBDT to issue appropriate directions and create a platform for opting out from the Aadhaar linkage requirement till 31.03.2019, disposing of the writ petition accordingly.