State Govt has perpetuated injustice to left outs: Prem Goyal

Sikkim Express Report

GANGTOK, December 8: The Nagrik Sangharsha Samiti (NSS) chief coordinator Prem Goyal has shot off an angry protest letter to the State government accusing it of perpetuating injustice to the left out individuals of Sikkim over the income tax exemption issue.

In a representation to State Chief Secretary, Goyal slammed the conclusions of the committee constituted by the State government to look into the old settlers’ demand for income tax exemption at par with the Sikkim subject holders. ‘It is prima facie clear that the committee has not taken into considerations the contents of my earlier representation of August 29 and ignored the same by perpetuating injustice to the left out individuals, barring foreigners, residing in Sikkim before April 26, 1975’, he said. “The NSS expected a fair hearing before the committee which is a normal administrative procedure in any democratic system”, said the chief coordinator.

Regarding the committee observations that there was no provision in the Income Tax Act, 1961 for grant of income tax exemption to the left out individuals in State of Sikkim, Goyel countered by stating that ‘there was no provision in the Income Tax Act, 1961 for grant of income tax exemption to the erstwhile Sikkim Subject holders until Sec.10 of the Act was amended by the Finance Act, 2008 which inserted 26AAA’.

“The exemption granted to the erstwhile Sikkim Subject holders and others covered by Government of India Order No.26030/36/90-I ICI dated 7.8.1990 and 8.4.1991, is based on the Cabinet Memorandum No.06/Fin/Adm. dated 21.08.2007 the contents whereof are well within your knowledge as the same was signed by you as Additional Chief Secretary and Secretary-in-Charge, Finance, Revenue and Expenditure Department of the State Government”, told Goyel to the Chief Secretary.

“The question of tax exemption was a long-pending political demand of the State of Sikkim and that the same has been agreed to and granted by the Centre under Sec.26AAA discriminating all such persons residing in the State before April 26, 1975. While pressing for tax exemption, the State Government appears to have totally forgotten the legitimate and genuine demands and expectations of all such persons (barring foreigners) who stood at par and became equal with the erstwhile Sikkim Subject holders as on April 26, 1975”, said Goyal.

The NSS chief coordinator urged the Sate to put forward the case of the left out persons residing in Sikkim before April 26, 1975 for income tax exemption in the same manner in which tax exemption was secured for the erstwhile Sikkim Subject holders. This political demand is justified, legitimate and consistent with the role played by all such persons in the all-round development of Sikkim being equal in all respects, he said.

Goyal further requested that the Finance circular directing all government departments/agencies and authorities to initiate the process of Tax Deduction at Source with effect from December, 2009 be stayed and kept in abeyance till NSS’s demand is conceded to by the State and the Central Government through suitable amendment of the applicable law.