Mehmood Askari Vs Union of India Through Secretary (Jammu & Kashmir High Court)
The Jammu & Kashmir High Court has ruled that a Schedule Tribe member’s income is not exempt under Section 10(26A) if the source is not from the specified Ladakh region. The court upheld a tax assessment on Mehmood Askari, finding he failed to prove his residency and income source from the exempted area.
The Jammu & Kashmir High Court on Thursday, July 10, 2025, dismissed a petition by Mehmood Askari, a Schedule Tribe member, challenging an income tax assessment and a revision order. The court ruled that income for a Schedule Tribe member is not exempt under Section 10(26A) of the Income Tax Act, 1961, unless the income accrues or arises from a source within the specified area. The petitioner had failed to prove that his income originated from the Ladakh region.
The case originated when the Income Tax Officer (ITO) Ward 25(2)(1), Mumbai, the Assessing Authority, noted a cash deposit of ₹60,15,542 by Askari in his J&K Bank account during the financial year 2015-16, relevant to the assessment year 2016-17. Askari had neither filed an original return of income nor responded to a notice under Section 148 of the Act. Subsequent notices under Section 142(1) also went unheeded.
