Supreme Court Stay on PAN linking with Aadhar

New Delhi, June 9: In a temporary setback for the government’s plan to make Aadhaar mandatory for all citizens, the Supreme Court has partially stayed the newly-inserted provision of the Income Tax Act that makes linking of Aadhaar number with the Permanent Account Number (PAN) mandatory.

The bench of Justice Ashok Bhushan and Justice A.K. Sikri upheld the Section 139AA subject to the final verdict on the privacy issues which is pending before the constitution bench, on Friday.

Justice Sikri said 'We are not touching the aspect of privacy under Article 21 as it is already pending before the Constitutional bench.' Those who are not having Aadhaar card can file income tax returns without linking it to PAN.

On 4th May, The court had reserved the order on the pleas by former Major General of Indian Army S.G. Vombatkere, Convenor of Safai Karamchari Andolan Bezwada Wilson, and senior Communist Party of India (CPI) leader Binoy Viswam, who had challenged the validity of Section 139AA.

The provision mandating linking of Aadhaar number with the PAN would have 'extremely far-reaching consequences not only for individuals but small businesses too,' The petitioners had told the court.

The government had an agenda to push Aadhaar and pointed to the dichotomy between Aadhaar Act, 2016 that makes possessing Aadhaar card optional and the Section 139AA of the Income Tax Act that makes its linking with PAN mandatory.

CPI leader Visman, petitioner had told the court 'A right that is voluntary under Aadhaar Act can’t be made a penal provision under the Income Tax Act.'