Home / Latest News / Supreme Court: Tax Evasion is there and we all know about it. It is a shame on us that we do not want to pay the tax.

Supreme Court: Tax Evasion is there and we all know about it. It is a shame on us that we do not want to pay the tax.

April,27,2017:

Apex Court expounds that,”Court cannot impose its wisdom on the Parliament. It is for the Parliament to take a decision and we cannot say which system is better or worse”.

Justifying amendment in Income Tax law for linking Permanent Account Number (PAN) to theAadhaar card, Centre submitted before Supreme Court that it was done to curb the tax evasion and keep tabs on circulation of the black money as PAN was not foolproof.
Supreme Court
Supreme Court

Appearing before Apex Court Bench comprising of Justice A K Sikri and Justice Ashok Bhushan, Attorney General Mukul Rohatgi stated that it was easy to get fake or duplicate PAN cards and cites some estimates showing nearly 10 lakh fake PAN cards being made every year.

He further added that keeping this in mind, new provision of the Section 139AA was added to law passed by Parliament, making it mandatory to quote Aadhaar card number while filing income tax returns and allotment of the PAN number from July 1 this year.

Opposing plea of a bunch of petitioners, challenging constitutional validity of the Section 139AA of Income Tax Act Rohatgi submitted that,”Biometric system was only way to prevent duplication as there was no way in which people could get a duplicate or fake Aadhaar number and linking of PAN with the Aadhaar would be very effective in monitoring cases of tax evasion as people were procuring multiple PAN cards which were used to divert funds to shell firms.

 Apex Court Bench expounded that,”Tax evasion is there and we all know about it. Government will try to block all such leakages. It is a shame on us that we do not want to pay the tax. What is wrong if the PAN cards are substituted by the  Aadhaar card”.

Senior Advocate’s Shyam Divan and Arvind Datar, appearing for petitioners, contended that making the Aadhaar card mandatory would push country towards a totalitarian state where citizens’ rights would be made subservient and Government would keep an eye on each of their activities.

Supreme Court Bench, however, stated that the decision was taken by the Parliament and it was not for judiciary to go into issue whether present system was better. Apex Court further added Government’s assurance could not restrain the Parliament from passing a law.

 SC enunciated that,”Court cannot impose its wisdom on the Parliament. It is for the Parliament to take a decision and we cannot say which system is better or worse. It is not for us to say that the PAN card is good and it cannot be replaced by the Aadhaar card”.
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