In Brief
The Supreme Court upheld the constitutional validity of Section 139AA of the Income Tax Act, 2017, which mandates linking Aadhaar with PAN for tax assessees. The Court held that Parliament had legislative competence to enact this provision despite earlier interim orders declaring Aadhaar enrollment voluntary. The Court found no violation of Articles 14 or 19(1)(g), holding the classification reasonable with rational nexus to combating black money and duplicate PANs. However, the Court read down the provision to operate only prospectively and granted partial stay on penalties invalidating PAN cards, pending final determination on Article 21 (Right to Privacy) before a Constitution Bench.
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