Supreme Court rejects plea challenging Income Tax break to STs in North East
New Delhi: The Supreme Court has refused to entertain a petition challenging the income tax exemption granted to Scheduled Tribes (STs) residing in specified north-eastern states and certain other notified tribal areas.
The petitioner, Ashwini Kumar Upadhyay, sought directions to the Central Government to introduce a creamy layer system for tax exemptions available to STs in these regions. He argued that the benefit should be restricted to economically weaker individuals and not extended to the rich and elite sections within the community.
According to the petitioner, the blanket income tax exemption granted without any upper income limit is arbitrary, irrational, and violative of various constitutional provisions.
However, a bench comprising Chief Justice of India (CJI) Surya Kant and Justice V. Mohana declined to examine the matter and instead granted liberty to the petitioner to approach the Centre and the relevant parliamentary committee.
The Court observed that the relief sought essentially involves the formulation, revision, or amendment of legislative and public policy measures. Therefore, it stated that the Supreme Court may not be the appropriate forum to consider such issues at this stage.
"It seems to us that the relief sought by the instant petition essentially involves formulation/revision/amendment of legislative/public policies. This court may not, therefore, be an appropriate platform for the aforesaid purpose at this stage. The petitioner may approach the Parliamentary Committee by way of a comprehensive petition," the Court said.
The Chief Justice further noted that Parliament has constituted a Committee on Petitions, before which citizens can seek enactment, amendment, or repeal of laws. He stated that the petitioner may approach the Committee on Petitions constituted under Rule 306 of the Rules of Procedure and Conduct of Business in Lok Sabha by filing a comprehensive petition.
Additionally, the Court said that the petitioner would be at liberty to send a copy of the writ petition as a representation to the Ministry of Finance, the governments of north-eastern states, and other concerned authorities for consideration.
