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TMI Blog2009 (7) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... to be set aside. X X X X Extracts X X X X X X X X Extracts X X X X ..... those which have been incorporated pursuant to the amendment allowed by this court by an order dated March 26, 2009. 7. Though various contentions have been raised on behalf of the petitioner, it is pointed out that the order passed by the first respondent is without jurisdiction and consequently on this point alone the petition has to be allowed and the order is liable to be set aside and the matter remanded for consideration by the prescribed authority, which, according to the petitioner, is the Central Board of Direct Taxes and not respondent No. 1, i.e.) Director General of Income-tax (Investigation), Pune. 8. Replies have been filed on behalf of the respondents. The passing of the impugned order was justified. By our order dated June 22, 2009, after hearing the parties, the court had directed the respondents to clarify as to who is the prescribed authority. Pursuant to that, an affidavit has been filed by Mr. Dharamchand Nemichand Parikh, Deputy Director of Income-tax (Investigation) (H. Qrs.), Pune. Reliance is placed on rule 2CA of the Income-tax Rules, 1962. Reliance is also placed on a notification dated May 30, 2007. Based on the Rules and the notification, it is set ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the jurisdiction of Director of Income-tax (Exemption), Bangalore the prescribed authority shall be Chief Commissioner of Income-tax, Bangalore-I Bangalore ;" 11. From a reading of rule 2CA of the Rules, it would be clear that in respect of application received prior to April 3, 2001, the prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 of the Act shall be the Central Board of Direct Taxes constituted under the Central Board of Revenue Act. In section 10(23C), the expression used is "prescribed authority". Prescribed authority is not defined under the Act. Under the Rules framed the prescribed authority has been defined for the purpose of sub-clause (vi) and (via) as the Chief Commissioner or Director General, and in respect of applications received prior to April 3, 2001, as the Central Board of Direct Taxes. There is also a proviso to rule 2CA(1A) which sets out that in respect of application received prior to April 3, 2001, where no order has been passed granting approval or rejecting the application as on May 31, 2007, the prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be the Chief Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at if the notification of May 30, 2007, is considered, it would be clear that the Central Board of Direct Taxes has authorised the Chief Commissioner or the Director General. It is the submission on behalf of the respondents that there is delegation of powers by the Central Board of Direct Taxes in favour of the Director General. Let us examine the said contention. 15. The Rules made are pursuant to the power conferred on the Central Board of Direct Taxes under section 295 of the Act. The Rules so made, in so far as section 10(23C)(via) is concerned, have defined the "prescribed authority" in respect of applications made prior to April 3, 2001, and which were not disposed of by May 31, 2007, as the Central Board of Direct Taxes. The notification issued on May 30, 2007, would be referable to rule 2CA (1) which has notified the Chief Commissioner or the Director General, generally, i.e., without any territorial jurisdiction. There are several Chief Commissioners or Directors General for various commissionerates or areas throughout India. The notification only spells out which of the Directors General or Chief Commissioners would have jurisdiction, in that area. So read, in so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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