Shreyasen & Anr.  Vs. Union of India & Ors.

Income Tax Law – For the duration of the exemption period there shall be no insistence for Aadhar and Pan linkage for filing Income tax returns.

[Case Brief] Shreyasen & Anr.  Vs. Union of India & Ors.

• BRIEF FACTS AND PROCEDURAL HISTORY:

1. The petitioners claimed directions that they should be permitted to file Income Tax returns for AY 2017-2018 without complying with the condition of providing Aadhar Card registration number or Aadhar Card Enrolment number and a direction of the similar kind is sought thereby directing the CBDT to rely on its notification dated 30.06.2018. CBDT order – “Order under Section 119 of the Income-tax Act, 1961 Vide its orders dated 31.07.17,31.08.17, 08.12.17 & 27.03.18, in file of even number, CBDT had allowed time till 30th June, 2018 to link PAN with Aadhaar while filing the tax-returns. Upon consideration of the matter, the CBDT further extends the time for linking PAN with Aadhaar till 31st March, 2019.”

• ISSUE BEFORE THE COURT:

1. Whether the petitioners be allowed to file Income Tax returns for AY 2017-2018 without complying with the condition of providing Aadhar Card registration number or Aadhar Card Enrolment number and a direction of the similar kind is sought thereby directing the CBDT to rely on its notification dated 30.06.2018?

• RATIO OF THE COURT

1. The petitioner relied upon the order of this court dated 14.05.2018 (W.P. (C) No.3212/2018 – Mukul Talwar vs. Union of India & Ors. and connected matters) where the court dealt with a similar matter and held that after reading CBDT’s circular dated 27.03.2018there is no room for doubt that the time for linking PAN with Aadhaar has been extended to June 2018 in its expressed term. The Court, therefore, saw no reason to vary its previous order. The returns filed by the petitioner shall be expedited and processed in accordance with law subject to the outcome of the decision in WP(C) 494/2012 and connected matters.
2. In the present petition, the CBDT has issued a similar order there the court held that a similar direction as in the case of Mukul Talwar (supra) is warranted in this case. Accordingly, the petitioners shall be permitted to file their returns, for AY 2018-2019, without any insistence of linkage of their Aadhar and their PAN numbers and without instance of production of their proof of Aadhar enrolment. In case the returns are filed within the time prescribed by law, without such linkage, they shall be processed in accordance with law and in accordance with CBDT circular dated 27.03.2018 as extended on 30.06.2018.
3. Court also held that at least for the period till 31.03.2019, the CBDT shall issue an appropriate direction, and also create a platform by amending the digital form of substituting them properly to enable “opt out” from the mandatory requirement of having to furnish Aadhar Registration or Aadhar linkage, for the duration, the exemption subsists i.e. till 31.03.2019.

• DECISION HELD BY COURT:

1. The court held that, for the duration of the exemption period there shall be no insistence for Aadhar and Pan linkage for filing Income tax returns.