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TMI Blog1988 (7) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... desh. From 1972, he started working as a Security Commissioner of Arunachal Pradesh and at the relevant time was posted at Tezpur. The occasion to file this writ application under article 226 of the Constitution arose following the advice of the Income-tax Officer, Tezpur, to the Treasury Officer, Darrang, Tezpur, to deduct income-tax from the salary of the petitioner. His assertion is that he is not liable to pay any income-tax in view of what has been stated in section 10(26) of the Income-tax Act, 1961, hereinafter "the Act". The stand of the petitioner not having been accepted, he has approached this court to seek a direction not to deduct any income-tax from his salary. The stand of the Department is that the petitioner's case is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-exist (i) he should be a member of a Scheduled Tribe as defined in clause (25) of article 366 of the Constitution; (ii) he should be residing in any area specified in Part A or Part of the Table (as these parts were then described) appended to paragraph 20 of the Sixth Schedule to the Constitution or the State or Union Territories mentioned in this provision -: (iii) the income in respect of which exemption is claimed must be an income which accrues or arises to him (a) from any source in the area, State or Union Territories mentioned in the provision ; or (b) by way of dividend or interest on securities. In so far as the question of residence is concerned, the contention of the Department, as appears from annexure-6, is that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnection, learned counsel had referred us to CIT v. Anamallais Timber Trust Ltd. [1950] 18 ITR 333 (Mad), where it was held that to decide the place where the income accrues or arises, the actual receipt of the income is not material but these words have to be understood as conveying the area of an enforceable right to receive the income. In E. D. Sassoon and Co. Ltd. v. CIT [1954] 26 ITR 27 (SC), the place of accrual or arising of income was held to be the place where the right to receive the income had arisen. In so far as the present case is concerned, it is difficult to say that the right to receive the income had accrued in Arunachal Pradesh merely because the petitioner is Government servant of Arunachal Pradesh. According to us, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruing or arising mean something different from receiving. Even if it is conceded that the concept of accrual or arising is different from receiving, there is still another difficulty in the way of the petitioner in claiming exemption under section 10(26) of the Act in as much as the income must accrue or arise from any source within the area in question. Now, the meaning of the word "source" as given in Webster's New Twentieth Century Dictionary is "place of origin from which something comes or develops, that which gives rise to anything". In the present case, the place wherefrom the income had originated is Tezpur. By no stretch of imagination, it can be said that the source of income of the petitioner is Arunachal Pradesh merely because ..... X X X X Extracts X X X X X X X X Extracts X X X X
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