- (1.) The petitioner submitted an application under Section 10(23C)(vi) of the Income Tax Act, 1961 (the Act) for Assessment Year 2013-14 on 19 March 2014. A notice to show cause was issued to the petitioner on 9 April 2014 to explain why its application should not be rejected on the ground that it was filed beyond the stipulated date of 30 September of the relevant assessment year from which the exemption was sought. Since the petitioner had filed the application beyond 30 September 2013, it sought a condonation of the delay in filing the application. The Principal Chief Commissioner of Income Tax, Kanpur by his impugned order dated 25 April 2014 has declined to entertain the application on the ground that it was filed beyond the stipulated date.
(2.) The relevant proviso in Section 10(23C)(vi) of the Act provides as follows: "Provided also that in case the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in the first proviso makes an application on or after the 1st day of June, 2006 for the purposes of grant of exemption or continuance thereof, such application shall be made on or before the 30th day of September of the relevant assessment year from which the exemption is sought:"
(3.) The submission, which has been urged, is that the power which has now been conferred upon the Chief Commissioner was earlier vested in the Central Board of Direct Taxes which, under Section 119(2)(b) of the Act, has the power in cases of genuine hardship to authorize by general or special order any income tax authority not being a Commissioner (Appeals) to admit an application or claim after the expiry of the period specified by the Act. Hence, it was submitted that once the power under the aforesaid proviso has now been vested with the Chief Commissioner, he must necessarily have all ancillary and incidental powers including the power to condone the delay.;