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Old Settlers Associatiom mulls judicial remedy on it exemption

Old Settlers Associatiom mulls judicial remedy on it exemption

22 Oct Gangtok: Rebuffed by the state government on their demand for exemption from income tax for the families of old settlers after the centre had extended the benefit to the indigenous people last year, the Old Settlers Association has decided to consider seeking judicial remedy in the matter.
“We will explore the option to seek judicial remedy for income tax exemption for the old settler’s families at tomorrow’s meeting of the Old Settlers Association as the state government has appeared to have washed off its hands from the genuine demand,” a senior representative of the apolitical body told Himalayan Mirror here on the condition of anonymity.

Describing the exemption of the families of old settlers from direct tax exemption as ‘discriminary’ and violative of constitutional provision of ‘equality of all before the law’, he sasked how can the centre give benefit to one section of the society and 3exclude others when the constitution grants equal status for all?

“How are we people (old settlers’ families) different from the local people in the eyes of the law and the constitution whhich enshrines equal rights for all people?” the Old Settlers’ Association representative asked.

So far, we had refrained from seeking judicial remedy on the income tax exemption issue by taking the state government’s commitment on its face value, but now that the latter appeared to be reluctant to take up the matter with the centre, the aggrieved people have not been left with another option, but to move to the court, he said.

A number of other traders with business establishments in the posh MG Marg too echoed similar views and said that the bid settlers’ families must fight for their rights under the legal and political parameters without seeking to affront the sensibilities of the local people.

Let the issue of income tax exemption be resolved by the court once and for all, a trader said.

It may be mentioned that the state government, in a letter addressed to the Old Settlers Association, had justified the income tax exemption to the local people and sought to suggest that there was no provision under the Income Tax Act, 1961, to extend similar benefits to the families of old settlers.

Expressing its inability to take up their cause under the existing framework under the provisions of the Income Tax Act, the state government asked the apolitical body to seek legal opinion from the jurists and chartered accountants to pursue the matter further.

The ruling Sikkim Democratic Front (SDF) led by the Chief Minister Pawan Kumar Chamling had earlier this year made the income tax exemption for the old settlers’ families as a poll issue and made a commitment for the same in its election manifesto.
HM

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