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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 ..... ovided as per the "Press Release" dated 04th April, 2023, makes it abundantly clear that the term "Sikkimese" defined for the purpose of clause (26AAA) of section 10 of the Income Tax Act, 1961, by the Finance Act, 2023, is only for the purpose of Income Tax Act, 1961, and not for any other purpose (emphasis supplied).
We do not find that this clarification or explanation touches upon the sanctity of the rights and privileges reserved for genuine indigenous Sikkimese which are carefully preserved and protected under Article 371F (k) of the Constitution of India.
We do not find any justifiable reason to entertain the writ petition. X X X X Extracts X X X X X X X X Extracts X X X X ..... to be looked into and seen from an objective standpoint. 4. We find that the genesis of the amendment which was introduced in terms of the Finance Act, 2023, is a judgment of the Hon'ble Supreme Court of India, rendered in the case of Association of Old Settlers of Sikkim and Others Vs. Union of India and Another along with Rapden Lepcha and Others Vs. Union of India and Another, reported at (2023) 5 SCC 717. That judgment was passed on two writ petitions filed before the Hon'ble Supreme Court under Article 32 of the Constitution of India. One was Writ Petition (C) No. 59 of 2013, Association of Old Settlers of Sikkim and Others Vs. Union of India and Another. The other writ petition, being Writ Petition (C) No. 1283 of 2021, Rapden Lepch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be a citizen of India w.e.f. 26-4-1975. Conversely, it is held that all citizens of India, having a domicile in Sikkim on the day it merged with India i.e. 26-4-1975 must be covered under the Explanation in order to avail the benefit of the exemption under Section 10(26-AAA) of the IT Act, 1961. 148.3. The Union of India shall make an amendment to the Explanation to Section 10(26-AAA) of the IT Act, 1961, so as to suitably include a clause to extend the exemption from payment of income tax to all Indian citizens domiciled in Sikkim on or before 26-4-1975. The reason for such a direction is to save the Explanation from unconstitutionality and to ensure parity in the facts and circumstances of the case. 148.4. Till such amendment is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in case of an individual, being a Sikkimese, any income which accrues or arises to him- (a) from any source in the State of Sikkim; or (b) by way of dividend or interest on securities. Explanation.-For the purpose of this clause "Sikkimese" shall mean- (i) an individual, whose name is recorded in the register maintained under the Sikkim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (hereinafter referred to as the "Register of Sikkim Subjects"), immediately before the 26th day of April, 1975; or (ii) an individual, whose name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6AAA) of section 10 of the Income-tax Act, 1961 by the Finance Act, 2023. For the purposes of removal of doubts, it is hereby clarified that the term "Sikkimese" defined for the purposes of the said clause, is only for the purposes of the Income-tax Act, 1961, and not for any other purpose. ............................................" 8. It appears that the writ petitioner has also referred to the above clarification in paragraph 34 of her writ petition. However, according to her, the said clarification is insufficient and is without any legal basis. According to the writ petitioner, this arbitrary inclusion of Explanation (v) of Section 10 (26AAA) of Income Tax Act, 1961, undermines the sanctity of the rights and privileges reserv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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