The Supreme Court on Friday upheld the newly-inserted provision in the Income Tax Act mandating linking of the Aadhaar number with the Permanent Account Number (PAN), but partially blocked its operation.
A bench of Justice A.K. Sikri and Justice Ashok Bhushan in their judgment held that those who already possess the Aadhaar number will have to link it with PAN, but it cannot be insisted upon in case of people not possessing it.
The bench said that those who have already applied for Aadhaar number but are yet to receive it would suffer no adverse consequences and their PAN cards would not be invalidated as this would have “serious consequences”.
Section 139AA of the Income Tax Act, incorporated by way of the Finance Act 2017-2018, provides for the invalidation of PAN if it is not linked to Aadhaar number.