Section 139AA of the Income-tax Act, 1961, inserted by the amendment to the \u00a0said Act vide <\/em>Finance Act, 2017, which mandates quoting of Aadhaar number in the PAN application forms as well as in the income-tax returns with effect from 1-7-2017. The proviso to the section provided for the rendering of PAN\u00a0 as void\u00a0\u00a0\u00a0\u00a0 ab initio <\/em>for failure to comply with the requirements of the section.<\/p>\n \u00a0<\/p>\n Whether proviso to section 139AA(2) which renders PAN void ab initio <\/em>for failure\u00a0 to intimate Aadhaar number applies withretrospective effect?<\/p>\n \u00a0<\/p>\n Section 139AA makes it compulsory for the assessees to give Aadhaar number which means insofar as income tax assessees are concerned, they have to necessarily enrol themselves under the Aadhaar Act and obtain Aadhaar number which will be their identification number as that has become the requirement under the Income-tax Act.<\/p>\n The competence of the\u00a0 Parliament\u00a0 cannot be\u00a0 questioned on\u00a0 the\u00a0 ground that it\u00a0 is\u00a0 impermissible only because under Aadhaar Act, the provision is\u00a0 directory\u00a0\u00a0 in nature. It is the prerogative of the Parliament to make a particular provision directory in one statute and mandatory\/compulsory in other. That by itself cannot be a ground to question the competence of the legislature.<\/p>\n The provision is aimed at seeding Aadhaar with PAN.\u00a0 One of the main objectives\u00a0 is to de-duplicate PAN cards and to bring a situation where one person is not having more than one PAN card or a person is not able to get PAN cards in assumed\/fictitious names. In such a scenario, if those persons who violate section 139AA without any consequence, the provision shall be rendered toothless. It is\u00a0 the prerogative of the Legislature to make penal provisions for violation of any\u00a0 \u00a0law made by it. The requirement of giving Aadhaar enrolment number to the designated authority or stating this number in the income tax returns is directly connected with the issue of duplicate\/fake PANs.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n As the requirements of section 139AA, found as not violative of Articles 14 and\u00a0\u00a0 19, there have to be some provision stating the consequences for not complying with the requirements of section 139AA. However, as far as existing PAN holders are concerned, since the impugned provisions are yet to be considered in the context of Article 21 of the Constitution, and is to be decided by the Constitution Bench a partial stay of the aforesaid proviso is necessary.<\/p>\n If failure to intimate the Aadhaar number renders PAN void ab initio <\/em>with the deeming provision that the PAN allotted would be invalid as if\u00a0 the\u00a0 person\u00a0 had\u00a0 not applied for allotment of PAN would have rippling effect of unsettling settled rights of the parties. It has the effect of undoing all the acts done by a person\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0on the basis of such a PAN. It may have even the effect of incurring other penal consequences under the Act for earlier period on the ground that there was no\u00a0\u00a0 PAN\u00a0 registration by a particular assessee. The rights which are already accrued to\u00a0 a person in law cannot be taken away.<\/p>\n \u00a0<\/p>\n The proviso to section 139AA(2) cannot be read retrospectively as it takes away vested rights. It will only have prospective effect. (WP(C) No. 247 of 2017\/277 of 207\/304 of 2017 dt. 9-6-2017)<\/p>\n Editorial : <\/em><\/strong>In Hussain Indorewala v. UOI (2018) 408 ITR 338\/303 CTR 641\/168 DTR 113\/257 Taxman 465 (Bom.)(HC) <\/em><\/strong>held that in case the system does not accept the return the assesssee is at liberty to file their return of income in physical form with jurisdictional Assessing Officer.<\/p>\n \u201cFear of disease killed more men than disease itself.\u201d<\/em><\/p>\n – Mahatma Gandhi<\/p>\n","protected":false},"excerpt":{"rendered":" S. 139AA: Return of income \u2013 Quoting of Aadhar number \u2013 Legislative powers \u2013 Provision is held to be valid \u2013 Proviso to s. 139AA(2) cannot be read retrospectively as it takes away vested rights. It will only have prospective effect. [Art. 14, 19(1)(g), 21]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13409","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3uh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13409"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13409\/revisions"}],"predecessor-version":[{"id":13410,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13409\/revisions\/13410"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Issue<\/h3>\n
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