2021 (3) TMI 80

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....2 passed by the learned Single Judge, by which learned Single Judge while dealing with a challenge to the constitutional validity of Section 206AA of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for short) has read down Section 206AA of the Income Tax Act, 1961 and it has been held that it is inapplicable to the persons whose income is less than taxable limit as per Finance Act, 1991 and the Banking and Financial Institutions shall not invariably insist upon Permanent 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.   2. Facts leading to filing of this appeal briefly stated are that respondent Nos.1 t....

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.... Union of India in order to monitor all transactions which are taking place in India is proposing to create a data bank which records all the transactions both incoming as well as outgoing. It was also averred that in order to achieve complete data for setting up information database, Parliament has introduced the requirement of furnishing the Permanent Account Number in all transactions and creation of multiple transactions in order to avoid the limit prescribed will be eliminated. 4. The learned Single Judge vide impugned order dated 05.01.2012 inter alia held that Section 206AA of the Act is contrary to Section 139A of the Act and therefore, Section 206AA of the Act would not be applicable to persons whose income is below the taxable li....

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....UNAL BAR ASSOCIATION VS. STATE OF U.P. AND ORS.', (2003) 4 SCC 104]. It is well settled legal proposition that hardship or equity is not relevant in interpreting the provisions relating to taxation specially when the language used by the Legislature is plain and unambiguous. [See: 'STATE OF MADHYA PRADESH VS. RAKESH KOHLI AND ANR.', (2012) 6 SCC 312]. 8. Now we may advert to the facts of the case. The rational behind introduction of Section 206AA of the Act is explained in the memorandum explaining the provisions in Finance Act (2) of 2009. 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 data....