Condonation of delay for deduction claims must be sought before the competent revenue authority, not decided on merits in writ proceedings.

Where condonation of delay for filing returns affects deduction claims under Chapter IV-A, the matter should be placed before the competent statutory authority rather than decided on merits in writ proceedings. The court noted that the power to consider such relief lies with the CBDT under Section 119, and any delegate may act only if validly authorised. It therefore declined to examine the vires challenge or the deduction claims themselves, and directed the petitioners to submit the necessary applications and material to the CBDT for decision in accordance with law.

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Issues: Whether the petitions challenging rejection of deductions for belated return filing should be disposed of by directing the petitioners to seek condonation of delay before the Central Board of Direct Taxes.

Analysis: The petitioners sought only a direction for consideration of their request to condone delay in filing returns. The revenue contended that the power to grant such relief in relation to deductions claimed under Chapter IV-A lies with the Central Board of Direct Taxes under Section 119, and that any delegated authority could act only if powers had been validly delegated. In view of this position, the Court found it appropriate not to decide the vires challenge or the merits of the deduction claims, and instead required the petitioners to place the necessary applications and material before the Central Board of Direct Taxes.

Conclusion: The petitioners were directed to approach the Central Board of Direct Taxes for consideration of condonation of delay, with liberty for the Board or its delegate to pass orders in accordance with law.

Final Conclusion: The controversy was not adjudicated on merits and was resolved by directing recourse to the competent revenue authority for decision on condonation of delay.

Ratio Decidendi: Where the competent statutory authority is vested with power to consider condonation of delay connected with deduction claims, the writ court may dispose of the matter by directing the assessee to seek relief before that authority instead of deciding the merits itself.

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