Gauhati HC backs BSF DIG's tax exemption, orders IT refund

The Gauhati High Court has upheld a single-bench decision whereby it has asked the Central government to refund the income tax deducted from the salary of a BSF DIG belonging to the Scheduled Tribe community.

The case relates to tax exemptions claimed by Chyawan Prakash Meena, a BSF DIG who represents the Meena community of Rajasthan.

The BSF officer had claimed the exemption for the period of his posting in Agartala.

The Income Tax Department had contended that since Meena is from Rajasthan, which is not specified area under the Income Tax Act, 1961, he was not eligible for the exemption.

However, the Court dismissed the argument highlighting the relevance of the officer’s place of posting and not his place of origin.

Advocate Amit Goyal representing Meena in the Court referred to the provisions of section 10 (26) of the Income Tax Act, 1961 while contending that even a government employee on being posted out of his place of origin to a place falling within the area specified under the provisions of section 10 (26) of the Income Tax Act would be entitled to the exemption flowing therefrom.

The Income Tax Department was represented by standing counsel SC Keyal.