Summary
In this June 2017 decision, Section 139AA’s Aadhaar–PAN requirements survived legislative-competence, equality and occupational-freedom challenges, subject to the pending Article 21 examination. PAN invalidation was read prospectively, with partial interim protection for existing PAN holders without Aadhaar. The Court did not finally decide privacy or the overall constitutional validity of Aadhaar.
Issues
- What limited constitutional conclusions and interim protection followed from the Section 139AA challenge.
Provisions considered
- Section 139AA, Income Tax Act, 1961Its validity was upheld on the grounds decided, with prospective operation of PAN invalidation and a partial stay pending Article 21 review. (¶¶ 1, 125–128)
- Articles 14, 19(1)(g) and 21, Constitution of IndiaThe provision passed the first two grounds; privacy and dignity challenges under Article 21 were reserved for the Constitution Bench. (¶ 127–128)
Held
- Parliament was competent to enact Section 139AA; earlier judicial orders did not dilute that power. The Aadhaar Act and the tax provision operated in distinct fields, and the equality and Article 19(1)(g) challenges failed on the basis decided. (¶ 128(i)–(iv))
- The PAN-invalidation proviso was read prospectively to avoid unsettling accrued rights and past acts. Pending the Constitution Bench’s Article 21 determination, existing PAN holders without Aadhaar received the partial protection described in paragraph 125; already-enrolled holders were to comply. (¶¶ 125–126, 128(v))
- The 2017 ruling expressly reserved privacy and human-dignity questions and made its constitutional conclusion subject to the pending Constitution Bench proceedings. It also called for measures addressing unauthorised data leakage. (¶ 127)
Result
Writ petitions disposed of without costs, subject to prospective reading, partial stay and the reserved Article 21 determination.