By TIOL News Service

NEW DELHI, JULY 25, 2018: THE ISSUE AT HAND BEFORE THE BENCH IS - Whether an assessee can be exempted from the need to link the PAN number with the Aadhar registration number, till a mechanism enabling assessee to opt out from such mandatory requirement is created. YES IS THE ANSWER.

Facts of the case

The petitioners herein are individuals seeking directions enabling them to file income tax returns without having to comply with the pre-condition of providing the Aadhar registration number. The petitioners placed reliance on orders passed by this Court in Mukul Talwar vs. Union of India & Ors and by the High Court of Punjab & Haryana High Court in Pardeep Kumar v. UOI and Ors. In the former case, the CBDT had later issued an order extending the deadline for linking the Permanent Account Number (PAN) with Aadhar by one year. In the latter case, the Union of India gave a statement that the system would accept the petitioners' income tax returns without seeking Aadhaar enrolment number. Hence similar directions are sought through the present writ.

In writ, the High Court held that,

++ in the present petition, the CBDT issued an order under Section 119 of the Income Tax Act, 1961, on June 30, 2018 extending the time for linking the PAN and Aadhar Card till March 31, 2019 for the purposes of filing Income Tax returns;

++ a similar direction as in the case of Mukul Talwar vs. Union of India & Ors . 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;

++ nonetheless, the petitioners point out that even after the CBDT Circular of 30.06.2018, which in effect suspended the requirement of Aadhar linkage with PAN, for one year i.e. up to 31.03.2019, emails have been received from the Income Tax Authorities indicating that, in respect of the grievances like in the present case, parties have to approach the court. In this regard, 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.

(See 2018-TIOL-1443-HC-DEL-IT)