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SC Says S.139AA Of IT ACT Constitutionally Valid, But Partially Stays Its Operation

Team SoOLEGAL 9 Jun 2017 4:28pm

SC Says S.139AA Of IT ACT Constitutionally Valid, But Partially Stays Its Operation

Supreme Court of India on Friday upheld the constitutional validity of Section 139AA of Income Tax Act which made mandatory linkage of  IT returns with Aadhaar. However the Court has partially stayed the operation of the Section subject to the outcome of the Constitution Bench Judgment in the main Aadhaar Case in which the very validity of Aadhaar is challenged. The Bench has made it clear that those who don’t have Aadhaar need not apply for it for the purpose of filing IT returns. The Court also said that S.139AA has no retrospective effect.

The Bench comprising Justice A.K. Sikri and Justice Ashok Bhushan had reserved its judgment last month, on a batch of Petitions alleging that Section 139AA of the Income Tax Act, 1961 was “illegal and arbitrary” and “violative of Articles 14 and 21 of the Constitution”. Section 139AA stipulates that every person, who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number in the application form for allotment of permanent account number and in the return of income.

One Petition had been filed by Major General (Retd.) Sudhir Vombatkere and Bezwada Wilson, leader of Safai Karamachari Andolan, and another by former Kerala Minister and CPI leader Binoy Viswam.

The Petitioners had relied on various orders of the Supreme Court dated September 23, 2013, March 24, 2014, August 11, 2015, and October 15, 2015, contending that the Apex Court has time and again opined that the scheme is purely voluntary and is to be obtained only after obtaining the consent of an individual.

During the hearings, Attorney General Mukul Rohatgi had led a strong defence, banking on the efficiency of biometric details in preventing duplication. Mr. Rohatgi had further cited a number of instances to submit that there exists no absolute right to bodily integrity. Relying on political philosopher Rousseau, the AG had further argued that the State is like a corporation, and the individuals are its members. There is no harm in using the collective might of the state to provide orderly life, peace, and tranquility, he had suggested.

On the other hand, representing one of the Petitioners, Senior Advocate Shyam Divan had made one of the most compelling arguments on civil liberties in Aadhaar case, by touching upon the constitutionality of the amendment to the Income Tax Act without delving into the privacy aspects of the case.

Mr. Divan had argued on the concept of ‘informational self determination’, citing various rulings of the German Constitutional Court to explain that an individual must have the right to determine what sort of information belonging to him can be used. Mr. Divan had then linked this argument to the right to dignity as guaranteed under Article 21 of the Indian Constitution.

“I know of only one authority which might justify the suggested method of construction: “‘When I use a word,’ Humpty Dumpty said in rather a scornful tone, ‘it means just what I choose it to mean, neither more nor less.’ ‘The question is,’ said Alice, ‘whether you can make words mean so many different things.’ ‘The question is,’ said Humpty Dumpty, ‘which is to be master — that’s all.’” (Through the Looking Glass, c. vi.) After all in this long discussion, the question is whether the words “If a man has” can mean “If a man thinks he has”. I am of opinion that they cannot, and that the case should be decided accordingly,” Mr. Divan had submitted.

It is interesting to note that after the Apex Court had reserved its judgment in the matter, the Centre had issued a notification exempting certain individuals from the requirement of quoting Aadhaar/ Enrolment ID. The exemption had been applied to the following individuals:

  1. An individual who is residing in the state of Assam, Jammu and Kashmir and Meghalaya;
  2. An individual who is a non-resident as per the Income-tax Act, 1961;
  3. An individual of the age of eighty years or more at any time during the previous year; and
  4. An individual who is not a citizen of India.

Source: LiveLaw



Tagged: Supreme Court of India   Section 139AA   Income Tax Act  
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