Legal issue: The constitutionality of Section 10(26-AAA) of the Income-Tax Act, 1961, on the grounds of Article 14 of the constitution of India particularly the definition of “Sikkimese” under Section 10(26-AAA) Challenge was laid to proviso to Section 10(26-AAA) of the Act of 1961, which excluded any Sikkimese women marrying non-Sikkimese/Indian after 1-4-2008

The court held that -

Article 14 forbids class legislation but permits reasonable classification for the purpose of legislation, which classification must satisfy the twin tests of classification being founded

• an intelligible differentia which distinguishes persons or things that are grouped together from those that are left out of the group and

• that differentia must have a rational nexus to the object sought to be achieved by the statute in question

Therefore, the court held that Denial of exemption to women marrying Indians or non-Sikkimese after 1-4-2008 fails to provide any justification for such denial, It lso lacks any rational nexus with the cut-off date of April 2008. The proviso also was struck down for being inherently arbitrary and discriminatory towards women, Exclusion of women from inheritance on the ground of gender was a clear violation of the constitutional prohibition against unfair discrimination.