DIPTI DOLEY BASUMATARY Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS batch of writ appeals arise out of a common Judgment and Order dated 22. 6. 2005 passed by the learned Single Judge of this Court in Writ Petition (C) No. 200 (SH)/2001, Writ Petition (C) No. 340 (SH)/2002, Writ Petition (C) No. 14 (SH)/2004, Writ Petition (C) No. 15 (SH)/2004 and Misc. Case No. 188 (SH)/2001.

(2.) THE writ petitions were filed claiming exemption from payment of income tax on the ground that the writ petitioners are members of Scheduled Tribes as defined in Clause- (25) of Article 366 of the Constitution and residing in the area specified either in Part-I or Part-II of the Table appended to paragraph 20 of the Sixth Schedule to the Constitution. Precisely, the dispute raised by the writ petitioners centre around the scope and ambit of Section 10 (26) of the Income Tax Act vis-a-vis the constitutional provisions. Before the question is addressed, we may recapitulate the factual background of each case in brief.

(3.) WRIT Petition (C)No. 200 (SH)/2001 has been filed by the NEEPCO Employees Welfare Association, a registered Association, represented by its Organizing Secretary. The Association comprised of members belonging to Scheduled Tribe Community serving under the NEEPCO. They have been enjoying the benefits of tax exemption envisaged under Section 10 (26) of the Income Tax Act by virtue of their status as members of the Scheduled Tribe Community under Article 366 (25) while they were posted within the specified areas mentioned in Section 10 (26 ). The Income Tax Officer (TDS), Shillong by the impugned letter dated 29. 6. 2001 instructed the Director (Finance), NEEPCO Limited, Shillong to start deduction of income tax under Section 192 with effect from 1. 4. 2001 from the salary bills of the members of the petitioner Association for the reason that they are ineligible for exemption under Section 10 (26) of the Act. The reason for such a direction is that the number of any scheduled community coming from outside the Sixth Schedule Area is not exempted from paying taxes under Section 10 (26 ). Consequent thereupon, the concerned authority of NEEPCO by the letter dated 20. 7. 2001 called upon the members of the petitioner Association to furnish exemption certificates from the income tax authorities for calculation and deduction of income tax. The Income Tax Officer, Ward-3, Shillong by the impugned letter dated 7. 8. 2001 informed the NEEPCO authority that a member of a Scheduled Tribe Community who is not ordinarily residing in the State of Nagaland, Manipur, Tripura, Arunanchal Pradesh, Mizoram or any area specified in Part-I or Part-II of the table appended to paragraph 20 of the Sixth Schedule of the Constitution will not be eligible for exemption under Section 10 (26) of the Act even though he may presently reside and derive income from any of the States or areas mentioned therein.