Gauhati High Court Directs CIT (TDS) To Refund Income Tax Deducted From Salary Of Scheduled Tribe Officer Expeditiously

The Gauhati High Court has directed the Commissioner of Income Tax (TDS) to expeditiously process the request for a refund of income tax deducted from the salary of the DIG (Ops) of the Border Security Force, who is a member of the scheduled tribe.

The single bench of Justice Soumitra Saikia has observed that the phrase "residing in any area specified" under Section 10 (26) cannot be interpreted in a way that denies Schedule Tribe members who migrate from their places of origin, which just so happen to fall within one of the sub-specified section's areas, to another area, even though that area also falls within the sub-specified section's areas, the benefit of Section 10 (26) exemption from paying income tax.

The petitioner/assessee is serving as a DIG (Ops) of the Border Security Force and is posted in Masimpur, Silchar, and Assam. The petitioner is a member of a recognized tribe from the state of Rajasthan under Article 342 of the Constitution of India and is therefore entitled to an income tax exemption as provided under Section 10(26) of the Income Tax Act, 1961. The petitioner belongs to the "Meena" community, which is considered a Schedule Tribe under the Constitutional Scheduled Tribe State Order 1951 in the State of Rajasthan.

The petitioner, during the course of his service, has been posted in several places.

The petitioner contended that although he is certified to be a member of the Schedule Tribe "Meena" in the State of Rajasthan and, by virtue of that, he is exempt from payment of income tax under the provisions of Section 10(26) of the Income Tax Act, 1961, income tax has been deducted from his salary in the form of Taxes Deducted at Source (TDS).

Time and again, the petitioner has represented himself before the department to refund the taxes deducted from his salary as he is exempt from payment of income tax under Section 10(26). He represented himself before the Income Tax Officer, seeking a refund of income tax deducted in view of the caste certificate issued in his name and the benefit of exemption as prescribed under Section 10(26). However, the income tax deducted from his salary has not been refunded to date.

The court held that any member of a "scheduled tribe," as defined in Clause (25) of Article 366 of the Constitution, residing in any of the areas prescribed under Section 10(26), is exempt from payment of income tax.

Case Title: Chyawan Prakash Meena Versus UOI

Case No: WP(C)/404/2023

Citation: 2023 LiveLaw (Gau) 23

Date: 03.02.2023

Counsel For Petitioner: A. Goyal

Counsel For Respondent: Dy. S.G.I.

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