J LALHMINGLIANA Vs. UNION OF INDIA

JUDGEMENT

(1.) The question in issue in this case is whether the petitioners, who are members of Schedule Tribes are entitled to the benefits of exemption under section 10(26) (a) of the Income-tax Act, 1961 (hereinafter referred to as "the Act of 1961"), even when they are working outside the specified scheduled areas ?

(2.) The petitioners are admittedly government servants and members of Scheduled Tribes of the North-Eastern States. They are persons who draw salaries etc. from the Government of India. State Governments or Union Territories of the scheduled area States, namely, Nagaland, Manipur. Tripura, Arunachal Pradesh arid Mizoram and are posted outside the specified scheduled areas. However, it is claimed that they are perma- nent residents of the said areas.

(3.) Mr. Harish Salve, learned counsel for the petitioners has submitted that since the petitioners are permanent residents of the specified scheduled areas, they should be entitled to the exemption under section 10(26)(a) of the Act of 1961 even when they are physically working outside the said areas. He further contended that the words "residing in" should be interpreted as "belonging to" ths said areas and "income which accrues or arises" from any source in the areas, should be given the widest possible meaning.