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TMI Blog2023 (3) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... awarded several commendations and medals from various meritorious service. It is the contention of the petitioner that the petitioner is a member of a recognized Schedule Tribe from the State of Rajasthan under Article 342 of the Constitution of India and is therefore entitled to Income Tax Exemption as provided under Section 10(26) of the Income Tax Act, 1961. In support of his contention, the petitioner refers to the Caste Certificate issued by the Executive Magistrate and Tehsildar, Dist. Sawai Madhopur, Rajasthan, which certifies that the petitioner belongs to the "Meena" community which is considered to be a Schedule Tribe under the Constitution Schedule Tribe State order 1951 in the State of Rajasthan. The petitioner during the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore the respondent authorities are duty bound in law to refund the taxes deducted from his salary in terms of the law laid down by this Court in Pradip Kr Taye (Supra). The learned counsel for the petitioner has also referred to a Judgment by Tripura High Court, where Pradip Kr Taye (Supra) has been relied upon. 5. Mr. S. Chetia, learned Sr. Standing Counsel, Income Tax Department does not dispute the position of law laid down in the said Judgment of this Court. He submits that in terms of the Judgment, this Court has laid down that in terms of the benefit accrued under Section 10(26), beneficiaries like the petitioner who are members of Scheduled Tribes are not required to pay income tax. He, however, submits that further time be g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d immediately before the commencement of the North-Eastern Areas (Reorganization) Act, 1971 (71 of 197) or in the Ladakh region of the State of Jammu and Kashmir, any income which accrues or arises to him,- (a) from any source in the areas or States aforesaid, or (b) by way of dividend or interest on securities; 8. In terms of the provisions of this Section, any member of a Scheduled Tribe as defined in Clause (25) of Article 366 of the Constitution, residing in any of the areas prescribed under Section 10(26), is exempted from payment of income tax. This Court in Pradip Kr. Taye (Supra) had elaborately dealt with this issue and had laid down the law and had held that the expression under Section 10(26) "residing in any area specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the expression "residing in any area specified" must be interpreted in the context of the said sub-section. The context of the sub-section is that it is a special provision with reference to the specified areas of the country, that is, the areas comprising North East and Jammu & Kashmir of the country, which received a special treatment under the scheme of the Constitution in the various aspects of the application of the Constitution. It may also be worthwhile remembering that even in the matter of reservation of seats either in the Lok Sabha or the various Legislative Assemblies, the Scheduled Tribes of the State of "Assam" are treated exclusively under article 330(3) [330 (3) Notwithstanding anything contained in clause (2), the number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in section 10(26)(a) or certain sources specified in section 10(26)(b). While clause (a) of section 10(26) restricts the benefit to the incomes arising or accruing out of various sources, such as, salaries, house properties etc., (which are some of the heads of income) so long they arise or accrue within one of the territories/areas specified in the said sub-section, under clause (b) of section 10(26), such a restriction, regarding the territory (with reference to which the income arising out of dividend or interest on securities arise), is not applicable. 30. Yet another reason to reject the interpretation sought to be placed on the said sub-section by the revenue is the history of the sub-section. It is already noticed earlier, ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To over-paint the picture of a government servant as the embodiment of all power and prestige would sound ironical today his position in the society to put it at the highest is no higher than, that of others who in other walks of life have the same income. For the purpose of valid classification what is required is not some imaginary difference but a reasonable and substantial distinction, having regard to the purpose of the law." 31. Once it is held that such a classification of the government servants from the scope of section 10(26) is violative of article 14 to say that a government servant or the employees of the "State" (within the meaning of article 12) loses the benefit on the mere accident of his being posted out of his place of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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