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TMI Blog2025 (3) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Interest Litigation (PIL), challenging the vires to Explanation (v) contained under clause (26AAA) of section 10 of the Income Tax Act, 1961, which was introduced by way of amendment in terms of the Finance Act, 2023, insofar as it deals with the definition of the term, "Sikkimese". 2. According to the writ petitioner, this amendment to the definition of the term "Sikkimese" under section 10 clause (26AAA) of Explanation (v) of the Income Tax Act, 1961, by the Finance Act of 2023, is in violation of Article 371F (k) of the Constitution of India. According to the writ petitioner, it is the responsibility of the State of Sikkim to ensure protection of the old laws including its preservation/protection as provided under Article 371F (k) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners also prayed before the Hon'ble Supreme Court for an appropriate writ, order or direction striking down the proviso to section 10 (26AAA) of the Income Tax Act, 1961, insofar as it excludes from the exempted category, "Sikkimese woman", who marries a non-Sikkimese after 01st April, 2008. The Hon'ble Supreme Court dealt with the matter at length and delivered a judgment discussing the issues brought before it and disposed of both the writ petitions in the following terms:- "..................................................... 148.1. That the benefit of income tax exemption presently is restricted only to those Sikkimese who fall within the three clauses of the Explanation to Section 10(26-AAA) of the IT Act, 1961, or those p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and disparity in respect of the aforesaid category of Sikkimese, who subsequently have become citizens of India w.e.f. 26-4-1975 and to save the Explanation from being rendered unconstitutional vis-à-vis such individuals who form a small percentage of Sikkimese. 148.6. The proviso to Section 10(26-AAA), insofar as it excludes from the exempted category, "a Sikkimese woman who marries a non-Sikkimese man after 1-4-2008" is hereby struck down as being ultra vires Articles 14, 15 and 21 of the Constitution of India". 149. Parties to bear their respective costs." 5. The above judgment of the Hon'ble Supreme Court was rendered on 13th January, 2023. 6. Consequently, the Finance Act, 2023, was enacted on 31st March, 2023. The rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s domiciled in Sikkim on or before the 26th day of April, 1975; or (v) any other individual, who was not domiciled in Sikkim on or before the 26th day of April, 1975, but it is established beyond doubt that such individual's father or husband or paternal grand-father or brother from the same father was domiciled in Sikkim on or before the 26th day of April, 1975;':" 7. During the course of hearing of the matter, the learned Additional Advocate General representing the State of Sikkim has drawn our attention to a Press Release dated 04th April, 2023, issued by the Government of India, Ministry of Finance, Central Board of Direct Taxes (Tax Policy & Legislation Division). The said Press Release is quoted hereinbelow in its entirety: ". ..... X X X X Extracts X X X X X X X X Extracts X X X X
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