What the courts have decided on section 139AA, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
-
Srirangapattinam Desigan Srinivasan v DCIT (CPC-TDS)
High CourtHelps taxpayerValidity unconfirmed
I bought a flat, deducted one per cent under s.194-IA, and CPC has hit me with a demand because the seller's PAN was not linked to Aadhaar. Is there a High Court decision I can put in front of the officer?
Yes. The Madras High Court disposed of a writ against exactly such a demand by holding that nothing survived for adjudication once Circular No. 6/2024 applied and the department had itself reprocessed the statement and reported no defaults. The judgment is worth having chiefly because it reproduces Circular No. 6/2024 in full, with its file number and date, which is otherwise hard to source.
-
Parul Sharma v ITO (TDS), Noida
ITATHelps taxpayerValidity unconfirmed
The CIT(A) refused me the benefit of the PAN-Aadhaar circular because he said I was relying on the wrong circular. Is there a Tribunal order that simply directs the officer to apply the extended date?
Yes. The Delhi Bench set aside both the s.200A intimation and the CIT(A) order and directed the Assessing Officer to give the assessee the extended benefit of the CBDT circular of 23 April 2024 and pass a fresh order. It is a short order and the relief is a direction to apply the circular, not a deletion of the demand outright.
-
Statutory position — section 139AA(2) and rule 114AAA: what an inoperative PAN actually does, and the CBDT circulars that undo it
CBDT Circulars & InstructionsCuts both ways
CPC has raised a short-deduction demand on me because my payee's PAN was inoperative for want of Aadhaar linking. What exactly does an inoperative PAN do, and is there any Board relief?
An inoperative PAN carries four consequences and only four, and rule 114AAA(3) lists them: no refund of tax is made, no interest is payable on that refund for the period, tax deductible under Chapter XVII-B is deducted at the higher rate under section 206AA, and tax collectible under Chapter XVII-BB is collected at the higher rate under section 206CC. The third and fourth of those fall on the DEDUCTOR or COLLECTOR, not on the person who failed to link, which is why the demand lands on someone who did nothing wrong. The Board has issued a sequence of circulars relieving the deductor where the PAN is made operative by a date, and the sequence — Circular No. 3/2023 dated 28 March 2023, Circular No. 6/2024 dated 23 April 2024 and Circular No. 9/2025 dated 21 July 2025 — is the first thing to check, before any argument on merits.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.