2019 (2) TMI 326 - SC - Income Tax

Mandation of linkage of PAN with Aadhar - Permission to file Income Tax returns without complying with the condition of providing Aadhar Card registration number or Aadhar Card Enrolment number - Held that - As upheld the vires of section 139AA of the Income Tax Act linkage of PAN with Aadhar is mandatory. Insofar as assessment year 2018-19 is concerned, learned counsel appearing for the respondents informs that the respondents had filed the income tax returns in terms of the orders of the High Court and the assessment has also been completed. We therefore make it clear that for the assessment year 2019-20, the income tax return shall be filed in terms of the judgment passed by this Court.

Summary

Issues:
1. Validity of linking Aadhar and PAN numbers for filing Income Tax Returns.
2. Compliance with High Court order permitting filing without Aadhar-PAN linkage for Assessment Year 2018-19.
3. Clarification on filing Income Tax Returns for Assessment Year 2019-20.

Analysis:
1. The Supreme Court addressed the issue of the mandatory linkage of Aadhar with PAN for filing Income Tax Returns. The High Court had allowed filing without this linkage for the Assessment Year 2018-19, pending the Supreme Court's decision. However, the Supreme Court upheld the validity of section 139AA of the Income Tax Act, making the linkage mandatory. The respondents had filed returns for 2018-19 as per the High Court's order, but for the upcoming Assessment Year 2019-20, the Court clarified that returns must be filed as per the Supreme Court's judgment.

2. The High Court's order permitting filing without Aadhar-PAN linkage for the previous assessment year was based on the pending consideration in the Supreme Court. The respondents had complied with this order for the Assessment Year 2018-19, and their assessment was completed accordingly. The Supreme Court's decision on the matter now necessitates adherence to the mandatory linkage for future filings, specifically for the Assessment Year 2019-20.

3. In conclusion, the Supreme Court disposed of the special leave petition in accordance with the clarified terms for filing Income Tax Returns. Any pending interlocutory applications were also disposed of. This judgment provides a clear directive for taxpayers regarding the mandatory linkage of Aadhar with PAN for filing Income Tax Returns, emphasizing compliance with the law as upheld by the Supreme Court.