Section 10(26) exemption turns on the Sixth Schedule Table, covering Shillong and cantonment-area income for Scheduled Tribe members.

Section 10(26) exemption for a Scheduled Tribe member is determined by the Table appended to paragraph 20 of the Sixth Schedule, not by restrictive language in the proviso or sub-paragraph (2), unless that language is expressly incorporated. The note explains that Part II of the Table covers Khasi Hills District, and that description extends to Shillong municipality and the cantonment area for this purpose. On that basis, salary earned from employment in the cantonment area by a Scheduled Tribe member residing in Shillong is treated as income from a source in the specified area, supporting exemption under section 10(26).

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Issues: Whether a member of a Scheduled Tribe residing in Shillong could claim exemption under section 10(26) of the Income-tax Act, 1961 in respect of income earned from employment in the Shillong cantonment area, having regard to paragraph 20 of the Sixth Schedule to the Constitution.

Analysis: The exemption under section 10(26) applies to a member of a Scheduled Tribe residing in an area specified in Part I or Part II of the Table appended to paragraph 20 of the Sixth Schedule and earning income from a source in the specified areas. The reference in section 10(26) is only to the Table appended to paragraph 20 and not to the restrictive proviso or sub-paragraph (2) of paragraph 20. Part II of the Table specifies Khasi Hills District, and that description includes the Shillong municipal and cantonment areas for the purpose of section 10(26). The assessee was a Scheduled Tribe member residing within Shillong municipality, and her salary income arose from employment in the cantonment area within the specified district.

Conclusion: The assessee satisfied the statutory conditions for exemption under section 10(26) and the questions referred were answered in the affirmative, against the Revenue and in favour of the assessee.

Ratio Decidendi: Where a taxing provision incorporates only a statutory Table by reference, the exemption must be determined from the Table itself and not from restrictive language in other parts of the incorporated schedule unless expressly carried into the taxing provision.

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