UNION OF INDIA Vs. CAPITAL HARDWARE ENTERPRISES

JUDGEMENT

(1.) Heard Mr. B. Sarmah, the learned Standing counsel appearing on behalf of the N.F. Railway and Mr. S. Chetia, the learned Standing counsel appearing on behalf of the Income Tax Department. None has appeared on behalf of the Respondent No.1 in spite of effecting service.

(2.) The instant proceedings have been initiated by invoking the supervisory jurisdiction of this Court under Article 227 of the constitution challenging the orders dtd. 6/1/2017 and 9/6/2017 passed in Case No. Ex. A-50/2016 in OAI 178/2006 whereby there was a direction to the NF Railway to pay the tax which was deducted at source to the decree holder i.e. the Respondent No.1 herein on the ground that in terms with Sec. 10(26) of the Income Tax Act, 1961 (for short 'the Act of 1961'), there is an exemption of Income Tax on Scheduled Tribes.

(3.) Mr. B. Sharma, the learned standing counsel appearing on behalf of the Railways submitted that a perusal of Sec. 10(26) of the Act of 1961 would show that the benefit of exemption is granted to those Scheduled Tribes who are listed as Scheduled Tribes in terms with the Constitution (Scheduled Tribes) Order, 1950 whereas both the orders dtd. 6/1/2017 as well as 9/6/2017 do not show as to whether the applicant was a Scheduled Tribe so recognized within the State of Assam taking into account that the right to the compensation had accrued only within the State of Assam as the consignment was from Jharkhand to North Lakhimpur. He submitted that this aspect having not been considered, the orders dtd. 6/1/2017 as well as are required to be interfered with. In addition to that, the learned counsel submitted that the amount which have been deducted have been deposited in the Income Tax Department and the claimant i.e. the Respondent No.1, if entitled to any exemption, can very well claim refund of the said amount from the Income Tax Department.