Sikkim’s residents income from 1975 to 1990 not taxable under IT Act-1961

not taxable under IT Act-1961

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SC on income from Sikkim between 1975 to 1990 and holds once the assessee has paid the income tax at source in the State of Sikkim as per the law applicable at the relevant time in Sikkim, the same income was not taxable under the IT Act, 1961.

Mahaveer Kumar Jain
No.- Civil Appeal No. 4166 of 2006
Dated.- April 19, 2018
Court held
Now, the only question remains to be decided is whether in fact there is a specific provision for including the income earned from the Sikkim lottery ticket prior to 01.04.1990 and after 1975, in the income-tax return or not. We have gone through the relevant provisions but there seems to be no such provision in the IT Act wherein a specific provision has been made by the legislature for including such an income by an assessee from lottery ticket. In the absence of any such provision, the assessee in the present case cannot be subjected to double taxation. Furthermore, a taxing Statute should not be interpreted in such a manner that its effect will be to cast a burden twice over for the payment of tax on the taxpayer unless the language of the Statute is so compelling that the court has no alternative than to accept it. In a case of reasonable doubt, the construction most beneficial to the taxpayer is to be adopted. So, it is clear enough that the income in the present case is taxable only under one law. By virtue of clause (k) to Article 371F of the Constitution which starts with a non-obstante clause. It would be clear that only the Sikkim Regulations on Income-tax would be applicable in the present case. Therefore, the income cannot be brought to tax any further by applying the rates of the IT Act.
In view of the aforementioned discussions. We are of the considered view that once the assessee has paid the income tax. At source in the State of Sikkim as per the law applicable at the relevant time in Sikkim. The same income was not taxable under the IT Act, 1961.

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