Supreme Court Dismisses Plea Against Expanded Definition of “Sikkimese”, Rules Change Limited to Income Tax Exemption Purpose Only [Read Order]

In a recent ruling, the Supreme Court of India dismissed a plea challenging the expanded definition of “Sikkimese” under Section 10(26AAA) of the Income Tax Act, 1961, and clarified that the change is limited only to the purpose of granting income tax exemption.

The case arose from a special leave petition filed by Doma T. Bhutia against the High Court of Sikkim’s order dated 4 March 2025 in W.P. (PIL) No. 01/2025, which had rejected her challenge to the amendment made by Parliament following the Supreme Court’s earlier judgment in Association of Old Settlers of Sikkim and Others v. Union of India.

The petitioner’s counsel argued that the amendment to the Explanation of Section 10(26AAA), which broadened the meaning of “Sikkimese,” had diluted the distinct identity of the Sikkimese people.

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The matter was heard on 2 September 2025. The Bench comprising Justice B.V. Nagarathna and Justice R. Mahadevan observed that the expression “Sikkimese” has been expanded only for the limited purpose of granting the tax exemption provided under Section 10(26AAA) of the Act. It explained that Parliament, as a matter of policy, is entitled to widen the scope of a provision to extend benefits, and such a decision cannot be a ground of grievance.

The court pointed out that the expanded definition does not affect the cultural or constitutional identity of the Sikkimese people and applies solely for taxation purposes.

Finding no merit in the petition, the Supreme Court disposed of the case and observed that the Union of India may issue a formal notification consistent with its press release if it has not already done so. All pending applications were also disposed of.

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