Held that Sikkimese who were old Indian settlers and who had settled in Sikkim prior to the merger of Sikkim with India on April 26, 1975 were also entitled to the exemption under section 10(26AAA) of the 1961 Act. The proviso to section 10(26AAA) inasmuch as it excludes from the provision of exemption a Sikkimese woman merely because she marries a non-Sikkimese after April 1, 2008 is discriminatory and violative of articles 14, 15 and 21 of the Constitution of India, and requires to be struck down. Law declared by Court to be treated as law until legislation is made .
Association of Old Settlers of Sikkim v. UOI (2023)451 ITR 213 / 292 Taxman 73/ 330 CTR 481/ 222 DTR 1(SC) Rapden Lepcha v. UOI (2023)451 ITR 213/ 330 CTR 481/ 222 DTR 1 (SC)
S. 10(26AAAA): Income of Sikkimese – Individual- Old Indian settlers who had settled in Sikkim prior to the merger of Sikkim with India on April 26, 1975 were also entitled to the exemption-Proviso excludes from the provision of exemption a Sikkimese woman merely because she marries a non-Sikkimese after April 1, 2008 is discriminatory and violative of articles – Law declared by Court to be treated as law until legislation is made. [ Sikkim Income Tax Manual, 1948, Sikkim Citizenship (Amendment) Order, 1989 — Sikkim Work Permit Rules, 1965, Art. 14 15 142 371F ]