SC allows old Indian settlers, Sikkimese woman married to non-Sikkimese man tax exemptions under Sec 10 (26AAAA) of IT Act

The SC order further said that Section 10(26AAA) of the Income Tax Act would be amended to incorporate the changes

In a major verdict and relief to many, the Supreme Court on Friday said that all old Indian settlers of Sikkim who settled in the state prior to the merger of Sikkim with India whose names are not in the Sikkim Subject Register would also be entitled for exemption under Section 10 (26AAAA) of the Income Tax Act.
In another major decision the apex court said that Sikkimese woman married to non-Sikkimese man would also be eligible for tax exemptions under the Section 10 (26AAAA) of the Income Tax Act.
The SC order further said that Section 10(26AAA) of the Income Tax Act would be amended to incorporate the above-mentioned changes.
The SC’s judgement said that, “In view of the above and for the reasons stated above, both these petitions succeed. The exclusion of Old Indian settlers, who have permanently settled in Sikkim prior to merger of Sikkim with India on 26.04.1975 from the definition of “Sikkimese” in Section 10(26AAA) is hereby held to be ultra vires to Article 14 of the Constitution of India and is hereby struck down.”
“It is held that all Indians/old Indian settlers, who have permanently settled in Sikkim prior to the merger of Sikkim with India on 26.04.1975, irrespective of whether his/her name is recorded in the register maintained under the Sikkim Subjects Regulations, 1961 read with Sikkim Subject Rules, 1961 or not, are entitled to the exemption under Section 10(26AAA) of the Income Tax Act,” the judgement further said deciding in favour of the Old Settlers.
“Proviso to Section 10(26AAA) insofar as it excludes from the exempted category, “a Sikkimese woman, who marries a non-Sikkimese after 01.04.2008” is hereby struck down being ultra vires to Articles 14, 15 and 21 of the Constitution of India.” SC further decided in favour of Sikkimese women married to non-Sikkimese people.
“Both these writ petitions are accordingly allowed. However, in the facts and circumstances of the case, there shall be no order as to costs.” The judgement concluded.

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