In a women-friendly ruling, the Supreme Court has struck down section 10(26AAA) of the Income Tax Act, to the extend the provision denies income tax exemption to old Indian settlers and sikkimese women who married non-sikkimese men.
While terming the provision unconstitutional, Justice B.V. Nagarathna directed the Central Government to make an amendment to Explanation to Section 10 (26AAA) of I.T. Act, 1961, so as to suitably include aclause to extend the exemption from payment of income tax to all Indian citizens domiciled in Sikkim on or before 26th April, 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.
“Till such amendment is made by the Parliament to the Explanation to Section 10 (26AAA) of I.T. Act, 1961, any individual whose name does not appear in the Register of Sikkim Subjects but it is established that such individual was domiciled in Sikkim on or before 26th April, 1975, shall be entitled to the benefit of exemption,” the Court said.
While considering a bunch of petitions challenging the provision, the Apex Court held that “this direction is being issued in exercise of powers under Article 142 of the Constitution so as to eliminate discrimination and disparity in respect of the aforesaid category of Sikkimese, who subsequently have become citizens of India w.e.f. 26th April, 1975 and to save the Explanation from being rendered unconstitutional vis-à-vis such individuals who form a small percentage of Sikkimese.”
“Proviso to Section 10 (26AAA), insofar as it excludes from the exempted category, “a Sikkimese woman who marries a non-Sikkimese man after 1st April, 2008” is hereby struck down as being ultra vires Articles 14, 15 and 21 of the Constitution of India,” the Court said.
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