Delhi High Court Validates Income Tax Act Section 139AA: PAN-Aadhaar Linking Deadline Extended

The Delhi High Court upheld the validity of Section 139AA of the Income Tax Act, 1961, in line with Supreme Court judgments. The court emphasized that consequences under Section 139AA(2) would not immediately apply to non-Aadhaar holders. Considering the CBDT's circular extending the PAN-Aadhaar linking deadline, the court maintained its previous order, directing processing of petitioner's returns per law. The writ petitions were disposed of, pending applications resolved, and parties were ordered dasti for necessary action. The judgment clarified legal interpretation and deadline extension for PAN-Aadhaar linking, ensuring compliance with legal and judicial requirements.

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Issues: Validity of Section 139AA of the Income Tax Act, 1961; Interpretation of Supreme Court judgments; Extending time for linking PAN with Aadhaar.

In this judgment by the Delhi High Court, the issue revolved around the validity of Section 139AA of the Income Tax Act, 1961, and the interpretation of relevant Supreme Court judgments. The court considered the context of the directions given by the Supreme Court in Binoy Viswam Vs. Union of India, which upheld the validity of Section 139AA of the Act. The court noted that the interim relief granted aligned with the larger Bench judgment by Nine Judges and the observations made by Five Judges in the case of Justice K.S.Puttaswamy (Retd) vs. Union of India. The Revenue argued that the CBDT's circular was compliant with Section 139AA of the Act.

The court acknowledged the submissions and highlighted that when Binoy Viswam was decided, the issue of the fundamental right to privacy was under consideration by a larger Bench of Judges. The court emphasized that the consequences under Section 139AA(2) of the Act would not apply immediately to assesses who are not Aadhaar Card holders and do not comply with the mandate. Considering the background of the judgments and the CBDT's circular dated 27.03.2018, which extended the time for linking PAN with Aadhaar until June 2018, the court found no reason to alter its previous order. The court directed that the petitioner's returns be processed in accordance with the law, subject to the outcome of connected matters.

Ultimately, the writ petitions were disposed of in the mentioned terms, and pending applications were also resolved. The court ordered dasti to the parties for necessary action. The judgment provided clarity on the interpretation of the law and the extension of the deadline for linking PAN with Aadhaar, ensuring compliance with legal requirements and judicial directions.

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