Aadhaar Is Not Mandatory For Section 139AA Even After Constitution Bench Judgment And CBDT Notification Opines Praveen Dalal

The first official interpretation of majority judgment of Supreme Court in Aadhaar case has been given by Praveen Dalal and Perry4Law Organisation (P4LO). The same covers legal and constitutional interpretation of Section 139AA of Income Tax Act and its analysis by the Supreme Court.

This legal analysis is subject to the following two caveats:

(1) We are not giving all the legal reasons and Constitutional position regarding Constitutionality of section 139AA at this stage and would come up with the same at a latter stage after getting official response of Indian Government.

(2) We are also not discussing the Per Incuriam aspect of the majority judgment of Supreme Court that we would discuss at appropriate stage.

The conclusion of this interpretation is that Aadhaar is absolutely optional for Section 139AA and other tax and financial regulations purposes and people have a choice to refuse to enroll and use (if already enrolled) Aadhaar for these purpose.

Anticipating harassment at the hands of Indian Govt and tax authorities, we have introduced a two tier dispute resolution mechanism. This is as follows:

(1) Send this “Legal Analysis” (Pdf) of Section 139AA to any person or authority that demands enrollment, quoting or linking of Aadhaar with PAN or tax return, and

(2) If they persist in their illegal and unconstitutional demand for Aadhaar, use the Online Dispute Resolution (ODR) Portal of PTLB to fight such demands.

Please note that this legal analysis is “Not a Legal Opinion” and you have to approach us separately for that purpose.

Also the ODR Portal is a professional service of PTLB that you can use after engaging us in our professional capacity. 

We hope this legal analysis and consumer empowering portal of PTLB would help you in protecting your statutory and Fundamental Rights.

Update: 01-04-2019

(1) On 31-03-2019, the CBDT/Income Tax Department has issued a notification that has extended the last date to link Aadhaar with PAN to 30-09-2019. So nobody can touch your PAN till 30-09-2019 and thereafter the date would be extended again. This is an endless process and citizens can safely presume that nothing adverse would happen to their PAN for not linking it with Aadhaar.

(2) By the same notification it has been mandated that quoting the Aadhaar number would be mandatory to file tax returns from 01-04-2019 onwards.

(3) Quoting of Aadhaar has been made mandatory for filing of both online as well as offline/paper based tax returns.

Despite this much anticipated development, we believe that Aadhaar is absolutely optional for both filing of tax returns and for linking with PAN.

We would follow this viewpoint only and would use our “ODR Portal” to fight against such illegal and unconstitutional demands of Aadhaar.