Delhi HC directs IT Dept to enable Online Filing of Returns without Aadhaar [Read Order]

The Delhi High Court last day directed the income tax department to enable filing of IT returns electronically without linking with Aadhaar. The bench comprising Justices S Ravindra Bhat and A K Chawla asked the Central Board of Direct Taxes (CBDT) to accept e-filing returns without quoting an Aadhaar or Aadhaar enrolment number as the deadline has been extended to March 31, 2019.

The bench was hearing a petition filed by two individuals, Shreya Sen and Jayshree Satpute seeking direction to allow them to file their ITR for their income for FY18, without the requirement of providing an Aadhaar enrolment number.

The bench said that since the deadline for individuals to link their Permanent Account Number (PAN) to their biometric ID (Aadhaar) has been extended for the fifth time, there should be an “opt out” option for people filing their returns online.

The bench reiterated that it had earlier in other matter had directed the authorities to ensure that the two advocates returns are accepted “without indicating any linkage with Aadhaar No./quoting Aadhaar Enrolment No. or quoting Aadhaar No. with PAN details”.

The petitioners, both of whom are Delhi resident, said in their plea “despite orders, and multiple attempts, they have not been able to file their ITR, since there is no available option to opt-out of providing an Aadhaar or Aadhaar Enrollment number during e-filing, on the website.

Section 139AA was incorporated to the Income Tax Act vide Finance Act, 2017 requiring mandatory quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns and making application for allotment of PAN (Permanent Account Number) with effect from July 1 this year. as per the provision, non-enrolment of Aadhaar by July 2017 would render the PAN of the defaulting individual invalid, attracting serious consequences under the Income Tax Rules.

Recently, Supreme Court of India has dismissed the petition filed by CPI Leader Binoy Viswam challenging the provisions of section 139AA of the Income Tax Act mandating linking of Aadhaar with PAN number and for filing income tax returns.

In the current petition, the petitioners contended that the SC order entitles them to not quote Aadhaar number while filing tax returns. However, the online tax filing process does not give them any option to file their ITR without quoting Aadhaar.