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TMI Blog2021 (3) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Account Number (PAN) from small investors like respondent Nos.1 to 3 as well as from persons who intend to open an account in a Bank or Financial Institution HELD THAT:- Section 206AA of the Act is enacted as a measure to prevent the tax evasion. The Government of India is trying to eliminate circulation of unaccounted money and is intending to set up a database which contains and monitor all the transactions which take place in India. In order to gather the information for the aforesaid database, the appellants are insisting on furnishing of Permanent Account Number in all the transactions. The contention of the petitioner that Section 206AA of the Act takes away the benefit conferred by Sections 139A(1)(i) and 197A of the Act is mispla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed keeping in view the scheme of the Act and to fulfill its purposes [See: 'CALCUTTA GUJ. EDUCATION SOCIETY ANR. VS. CALCUTTA MUNICIPAL CORPORATION ORS.' 2003 (8) TMI 476 - SUPREME COURT ]. In the fact situation of the case, since, the provision was either not unworkable nor was inconsistent with other provisions of the Act, therefore, the learned Single Judge could not have applied the principle of reading down merely on the basis of hardship or equity which are not relevant in interpretation of the law relating to taxation. The impugned order passed by the learned Single Judge cannot be sustained in the eye of law - HON BLE MR. JUSTICE ALOK ARADHE AND HON BLE MR. JUSTICE NATARAJ RANGASWAMY APPELLANTS (BY MR. K.V. ARAVIND, ADV.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled Form 15G as required under Section 197A of the Act to enable respondent Nos.4 and 5 not to deduct the Tax at Source. However, respondent Nos.4 and 5 insisted for production of Permanent Account Number in pursuance of amendment to Section 206AA of the Finance Act, 2009. The grievance of respondent Nos.1 to 3 before the learned Single Judge was that they are not assesses and are not assessed to income tax and such a provision would cause undue hardship to them, which has come into force with effect from 01.04.2010. It was further averred that introduction of Section 206AA of the Act is arbitrary and violative of Article 14 of the Constitution of India. Accordingly, the prayer was made to strike down the provisions of Section 206AA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in holding that Section 206AA of the Act will cause hardship to poor, illiterate and uneducated person and it would be difficult for them to obtain Permanent Account Number. It was also pointed out that the learned Single Judge has failed to take into account the objects for introduction of Section 206AA of the Act and ought to have appreciated that principles of equity, hardship and inconvenience cannot be made applicable to taxation laws and on such ground, the provision cannot be read down. It is also urged that Section 206AA of the Act is not violative of any provisions of the constitution and therefore, could not have been read down. 6. Learned counsel for respondent Nos.3 and 4 submitted that they are formal parties to the lis. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply for allotment of Permanent Account Number if his total income or total income of any other person in respect of which he is assessable under the Act during the Previous Year exceeded the maximum amount which is not chargeable to income tax. Section 139(1)(i) is not absolute and apart from persons mentioned in the aforesaid clause, there are number of instances in Section 139A itself where persons are required to obtain Permanent Account Number even if they do not fulfill the conditions mentioned in Section 139A(1)(i) of the Act. For instance, a person is required to obtain Permanent Account Number if turnover of his business is exceeded ₹ 5 Lakhs irrespective of the fact whether his total income exceeded maximum amount chargeab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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