The Supreme Court has upheld the section 139AA of the Income Tax Act and said that linking of PAN with Aadhaar is mandatory for the filing of Income Tax returns. The Supreme Court made these observations while hearing an appeal filed by the Centre against a Delhi High Court order allowing two people, Shreya Sen, and Jayshree Satpute, to file Income Tax returns for 2018-19 without linking their Aadhaar and PAN numbers.
Section 139AA of the Income-Tax Act 1961 was introduced by the Finance Act, 2017. The section makes it mandatory to quote Aadhaar / Enrolment ID of Aadhaar application form, for the filing of return of income as well as in the application form to enroll for PAN.
Noting that with regard to Assessment Year 2018-19 the two petitioners had filed the Income Tax returns in terms of the orders of the High Court and the assessment has also been completed, Supreme Court said that for the assessment year 2019-20, the income tax return shall be filed in terms of the judgment passed by this court.
The section also specifies that those already in possession of the PAN numbers must mandatorily link their PAN numbers with Aadhaar. Failure to do so would result in PAN number becoming invalid.