Any provision which is arbitrary, discriminatory and violative of Article 14 can be struck down. Section 10(26AAA) of The Income Tax Act, 1961 excludes Indians who have settled in Sikkim, prior to merger of Sikkim with India on 26.04.1975, but whose names are not registered as ‘Sikkim Subjects’. There is no difference and/or distinction between those whose names are recorded under The Sikkim Subjects Regulations, 1961 and those whose names were not recorded. ‘Sikkimese’ like Old Settlers of Sikkim shall also be entitled to exemption under Section 10(26AAA) of The Income Tax Act, 1961.

Hon’ble Justice M.R. Shah, Association of Old Settlers of Sikkim v. Union of India, [Writ Petition (Civil) No. 59 of 2013].