Friday, November 23, 2012

Memorandum submitted to CIT,Siliguri at Gangtok at a function at Hotel Tashi Delek on 22.11.2012




The Commissioner of Income Tax, Siliguri
Income Tax Department
Ministry of Finance
Government of India
Camp: Gangtok, Sikkim

Sirs,

We are grateful to your goodself  for having spared your valuable time to be with us to understand the ground realities in respect to implementation of Direct taxes in Sikkim subsequent to amendment brought about by Finance Act 2008, inserting a new clause 26AAA in Section 10 of the Income Tax Act 1961.

May we submit that on several past occasions we  have impressed upon the   Central Board of Direct Taxes on the need of such a meet.

Sir, Sikkim ,a totally different country was made a State of the Union of India in 1975.Till 2008, the income tax law of Sikkim was- Sikkim Income tax manual 1948, which was uniformly followed by one and all for 60 long years.

There appears to have been some inadvertent omissions while defining the word ‘Sikkimese’ in reference to Clause 26AAA which does not cover all those who were entitled to income tax exemption. The old settlers have been permanently residing in Sikkim since last 100 to 130 years and unfortunately left out by non application of principles of equality and  further without having been heard on merit. The discrepancy by non inclusion is being repeatedly brought to the notice of Sikkim Government and Union Government .

In our various memorandums to The President of India, The Prime Minister of India, The Home Ministry, The Finance Minister and CBDT, we have explained and submitted at length as to how the old settlers are also Sikkimese and  how they have been genuinely left out from being considered for exemption on grounds of  having been similarly situated.

Sir, The Government of Sikkim having considered our demands duly constituting a committee and finding the same as just and genuine, has been kind enough to pass
a historic  resolution in the Sikkim Legislative Assembly urging the Union Government to cover these left out people also under the exemption bracket.

Our Chief Minister Shri Pawan Chamling  personally wrote a DO to then Finance Minister and urged the Government of India to rectify the anamolies.

Our Hon’ble  Chief Minister again met the Honourable Prime Minister of India  and raised the issue of grant of income tax exemption to left outs and Hon’ble PM gave a very positive assurance on the subject. The people of Sikkim and The Government of Sikkim headed by our beloved Chief Minister Shri Pawan Chamling have continuously supported and are with us on the issue.

His Excellency, the Governor of Sikkim Shri Balmiki Prasad Singh in the last four Budget Address has  hoped that the demand placed by the State Government in respect of Income tax Exemption to the of the Left-out communities including members of the old business communities of Sikkim will be addressed by the Central Government soon.

 His Excellency specifically said

“ This will ensure that the social cohesion and harmony prevailing in Sikkim be further strengthened and consolidated.”

Similarly, Hon’ble  Finance minister in his speech in the Parliament during Budget 2012 said the matter is under the consideration of the Government of India.

Lately, The Parliamentary Standing Committee On Finance has also taken cognizance of our submissions and has been been kind enough to recommend
to the  Government of  India to take suitable measures to include the  old settlers in the scheme of income tax exemption.

Your honor would appreciate that making Sikkim an Indian State was a unique and historic event as it involved merging of two different countries, their cultures and their laws,  and hence deserves a special place in application of laws with due regard to principles of equality and natural justice enshrined in the Constitution .


We cherish your visit to Sikkim as historic and hope that  you will convey the ground realities to the Central Board of Direct Taxes and Hon’ble Finance Minister of  India such that they get the right feel of the problem that lies in Sikkim- a very sensitive border State.

Sir, It is time that the aspirations of all section of people of Sikkim is considered positively leaving no one unhappy and that will usher in building a happy Sikkim, a peaceful Sikkim and a strong Sikkim and finally a strong India.


With highest regards

Yours Faithfully,


S K Sarda
President, Association of Old Settlers of Sikkim

Dt 22.11.2012
Gangtok

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