THE OLD SETTLERS OF SIKKIM

Old settlers advised to seek legal advice on IT exemption issue


GANGTOK, October 21: Deflating the high hopes of the old settlers of Sikkim for an early resolution of their concerns on the controversial income tax exemption issue, the State Government has asked the community numbering to around 400 families in the State to seek legal and constitutional advice so that the matter can be forwarded to the Centre.

In a recent communiqué to the Association of Old Settlers of Sikkim (AOSS), which had been spearheading the demand for income tax exemption at par with Sikkim Subject holders, the State Government has belatedly directed the body to approach legal experts or chartered accountants to look into the lacunae ‘if any’ in the Income Tax Act 1961 for ‘possible inclusion’ of their demands within the provisions of the said Act ‘so that the Government of Sikkim could take up the issue with the Government of India’.

The decision was communicated to the AOSS recently by the six member committee headed by Chief Secretary which had been formed to examine all matters relating to the grant of exemption of Central Income Tax (Direct Income Tax) to the left out individuals in Sikkim and make recommendations to the State government for taking up the issue with the Centre.

Having examined the matter, the committee members were unanimous in the decision that there were ‘no provision’ in the Income Tax Act, 1961 for grant of income tax exemption to the left out individuals of Sikkim, the committee told AOSS directing it to approach legal experts.

It is interesting to note the ‘if any’ rider in the communication to the AOSS which not only reinforces the State government’s surrender as it itself had admitted that there is no provisions in the Income Tax Act for income tax exemption but also deftly lobs the whole issue into the court of AOSS who have now no option except initiate a cumbersome legal exercise so that it can put up a dossier before the State government.

Following this process which may take months, it is also unclear at this moment whether the State government will simply ‘Cc’ the AOSS findings to the Centre or strengthen it with its official inputs.

As the State government escalates down from its tall promises of ‘Ladakh model’ and other politically coloured assurances, the AOSS has decided to rethink and draw up a new strategy to pursue their demands under the legal framework suggested by the State government. It is informed that a meeting will be conducted tomorrow here at Gangtok where members of AOSS from all four districts will attend as the body has been compelled to huddle back to the drawing board after a steady campaign in the past two years.

We will seek legal advice and submit our report to the State government, said the AOSS president SK Sarda to SIKKIM EXPRESS. He said that advice of the State government has been well taken by AOSS terming the communiqué as ‘positive signals’ from the State government.

Mr. Sarda said that AOSS is confident that ruling Sikkim Democratic Front (SDF) will take up the matter with the Centre as the party has committed to deliver income tax exemption to the left out individuals of Sikkim.
The old settlers had fully backed the SDF party during the recent elections and it is the responsibility of the SDF government to fulfill its promises, was the general feeling running high among the left out individuals of Sikkim.

Source: sikkim express