TaxTMI 
TaxTMI 
2016 (11) TMI 541
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.... Mr. K. Kalita, Mr. D. Handique & Mr. R. Kalita, Advocates For the Respondents: Mr. S. Sarma, Standing Counsel, Income Tax Deptt. JUDGMENT ( Hrishikesh Roy, J ) Heard Mr. J.C. Gogoi, the learned counsel appearing for the writ petitioners. Mr. S. Sarma, the learned standing counsel for the Income Tax Deptt. appears for the respondent Nos.2-7. 2. The petitioners belong to the Scheduled Tribe category and are residents of Jonai Circle of Dhemaji District of Assam. They are serving as faculty members of the Murkong Selek College, Jonai and they seek exemption of their salary earnings from tax, under Sub-section (26) of Section 10 of the Income Tax Act, 1961 (hereinafter referred to as 'the I.T. Act'). 3. Under Section 10 of the I.T. Act, ....
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....he total income of the person, for the previous year. 5. The petitioners claim that the Jonai Circle, where they reside and the Murkong Selek College, Jonai from where they earn their income, is included within the defined area, notified by the Assam Governor on 23rd February, 1951. They accordingly applied for exemption of the salary earnings, received by them as a faculty members of the Murkong Selek College, under Section 10(26) of the I.T. Act. However the plea was declared to be untenable by the ITO, North Lakhimpur on the ground that the petitioners do not reside in the areas covered by the 23.2.1951 notification and that their salary income does not accrue from such areas, as contemplated by Section 10(26) of the I.T. Act. 6. The s....
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....ification No. TAD/R/35/50/109, dated the February 23, 1951, issued by the Governor of Assam, and (4).................. .................................................. .................................................. 9. Coming to the third of the categories mentioned above are the areas covered by a notification issued by the then Governor of the State of Assam. It may be worthwhile to mention here that by the date of the said notification, i.e., of 1951, the State of Assam included territories far larger than the territories comprised within the boundaries of the State of Assam today. Some of those territories were later carved out and separate States were created which is a historical fact. The abovementioned notification carn....
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....e present case hinges on the word "residing in any area specified", occurring in Sub-section (26) of Section 10 of the I.T. Act. The scope and the true meaning of the exemption benefits and whether it applies to the petitioners, must be culled out with reference to the language of the notification dated 23.2.1951. The status of the areas where the petitioners reside and derive their income will have to be identified and it must also be decided whether such areas are covered by the notification of 23.2.1951. 8. In the case before us, some confusion is created by the petitioners by referring to another notification of 13th March, 1951, whereby the Murkong Selek area under the Jonai Revenue Circle were declared to be Tribal Belt area, under t....
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....t of tax exemption under Sub-section (26) of Section 10 of the I.T. Act. Therefore the question to be decided is whether by virtue of being residents of Jonai and salary being earned as faculty members of the Murkong Selek College, Jonai, the income of the petitioners is traceable to the defined area, under the notification of 23.2.1951. If this is answered in favour of the petitioners, their claim to exemption of income tax under Section 10(26) of the I.T. Act, will have legal basis. 11. From the communication of 27.4.2004 (Annexure-2) of the ITO, North Lakhimpur, it can be seen that the officer was influenced by the fact that Tribal Belt areas of Assam is not mentioned in Section 10(26) of the I.T. Act and on that basis, direction was is....