1990 (5) TMI 11

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....61 (43 of 1961), the Central Government hereby notifies "Cochin Devaswom Board, Trichur" for the purpose of the said section for and from the assessment year 1972-73." By virtue of this notification, the petitioner-Board has been enjoying income-tax exemption since the assessment year 1972-73. The validity of the above notification is purported to be limited by the Central Board of Direct Taxes to the assessment year 1984-85, as evidenced by exhibit P-4. It has further been stated in exhibit P-4 that if the petitioner-Board wanted extension of the tax exemption for subsequent years, it should seek renewal of the notification, exhibit P-3. The petitioner-Board thereupon made an application exhibit, P-5, to the Central Government for the r....

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....ious purposes or wholly for public religious and charitable purposes, which may be notified by the Central Government in the Official Gazette, having regard to the manner in which the affairs of the trust or institution are administered and supervised for ensuring that the income accruing thereto is properly applied for the purposes thereof." Exhibit P-3 notification admittedly is one issued under the above subclause. It can be seen from exhibit P-3 that the Central Government has notified the petitioner-Board as an institution entitled to tax exemption for and from the assessment year 1972-73. This notification thus enables the petitioner-Board to claim tax exemption for all time. The Central Board of Direct Taxes, however, by exhibit P....

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....e, according to the section, is exercisable in the like manner and subject to like sanction and conditions, if any, as govern the making of the notification, order, etc. It, therefore, follows that the power to cancel, modify, amend, etc., must necessarily be exercised within the limits prescribed under the section. It is also fundamental that the nature and extent of the application of this section must be governed by the relevant statute which confers the power to issue the notification. (vide Gopi Chand v. Delhi Administration, AIR 1959 SC 609 and Lachmi Narain v. Union of India, AIR 1976 SC 714). Applying this principle to the facts of the case, it can be stated without any fear of contradiction that only the Central Government have the....