Central Board of Direct Taxes meets Old Settlers to discuss IT exemption demand

GANGTOK, 17 Feb: Income Tax officials and members of the old business community of Sikkim sat in a meeting at Siliguri on 16 February, as earlier reported in NOW! The meeting was held under the directions of the Central Board of Direct Taxes which had issued directions to the Income Tax authorities at Siliguri and Gangtok to conduct discussions with concerned stakeholders. This was done as there has been mounting pressure on both the central government as well as the Income Tax authorities to take a decision on the demand of left our “old settlers” to be included in the scheme of exemption from paying central income tax.
The Central Board of Direct Taxes decided to hold consultations with all stakeholders and yesterday’s meeting was attended by officials of the Income Tax office, Siliguri as well as Gangtok along with around 20-25 members of the old settlers’ community of Sikkim. Those participating informed that the meeting went well, with the final response of the income tax authorities seemingly favourable. It is informed that at the end of the meeting the authorities assured to put up a positive report on the deliberations and demands of the community to the central government.
However, the near 3-hour long meeting was not all jovial as there were sensitive issues raised. The Income Tax authorities wanted to know why there was this demand for exemption from paying central IT from the old settlers and also demanded the legal basis for this demand. On the other hand, the authorities also wanted to know what the fallouts would be should they acquiesce to the demand for IT exemption as well the reaction should this demand be refused.
As per information received, those representing the old settlers’ at the meeting raised the issue of discrimination with the inclusion of clause 26AAA in section 10 of the IT Act, 1961 as amended in 2008. Some members also said that they did not object to paying of income tax but to the discrimination and division created in the society with this provision of clause 26AAA.
On the other hand some members of the old settlers’ community, it is informed, also threatened to undertake dharnas should their demands be ignored. Some also submitted their representations in writing to the income tax officials. The tax authorities, it is informed, seemed satisfied with the representations made and discussions on various related issues.
Of late, there have been a number of representations made to the central government by the old settlers’ community of Sikkim. Not just the representations made by the organisations but also the letters and other communiqués of the state government to the centre on the issue. The latest was the letter of the Chief Minister to Finance Minister, Pranab Mukherjee seeking that all proceedings of the Income Tax authorities be kept in abeyance in light of the matter of exempting the old business community being under consideration.