In a significant ruling, the Gauhati High Court has upheld a refund of income tax deducted from the salary of a Border Security Force (BSF) officer belonging to a Scheduled Tribe community. The division bench comprising Chief Justice Vijay Bishnoi and Justice N. Unni Krishnan Nair affirmed the officer’s entitlement to exemption under Section 10(26) of the Income Tax Act, 1961, which grants tax relief to members of notified Scheduled Tribes residing or posted in specified areas.
The case titled Union of India & Ors. v. Chyawan Prakash Meena (Case No.: WA/342/2023) revolved around the tax exemption claim of Chyawan Prakash Meena, an Assistant Commandant in the BSF and a member of the Meena community, recognized as a Scheduled Tribe in the State of Rajasthan.
High Court’s Observations
The Court noted that while Meena hails from Rajasthan, his claim for income tax exemption was strictly for the period during which he was posted in Agartala, Tripura—a region notified as a specified area under Section 10(26). The Court emphasized:
“It is not disputed that the respondent belongs to a notified Scheduled Tribe community of Rajasthan… and that he was posted in Agartala, which is a specified area under Section 10(26). Hence, he is entitled to exemption from income tax as per the provisions of the Act.”
Income Tax Department’s Argument Rejected
The Income Tax Department contended that since Meena is from Rajasthan—which is not a specified area under the Act—he was ineligible for exemption. However, the High Court dismissed this argument, highlighting the relevance of the officer’s place of posting, not his place of origin.
The respondent relied on the precedent set in Pradip Kr. Taye & Ors. v. Union of India & Ors. (2010), where it was held that individuals from Scheduled Tribe communities are entitled to the benefits of Section 10(26) if they are posted in specified regions, regardless of their native state.
Importantly, Meena clarified that he did not claim exemption for his posting in Silchar, Assam—which is not a specified area—but only for his service period in Agartala, Tripura.
Final Verdict
The division bench upheld the earlier single-judge decision directing the Income Tax Department to process the refund of tax deducted from Meena’s salary. The appeal by the Commissioner of Income Tax was dismissed.
Legal Representation
- Petitioner (Union of India): SC Keyal
- Respondent (Chyawan Prakash Meena): A. Goyal, A. Choudhury
This judgment reiterates the legal protection offered to Scheduled Tribe members under Section 10(26) of the Income Tax Act, reaffirming that tax exemption eligibility is linked to the area of posting and not merely to the state of origin.