2. The Corporation and, subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and function which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to the Corporation.
3. Section 60-A of the old Income-Tax Act, 1922 provided that if Central Government considers it necessary or expedient to do so for avoiding any hardship or anomaly, or removing any difficulty, that may arise as a result of the extension of this Act to the merged territories or to any Part B State or to Chandernagore, the Central Government may, by general or special order, make-
(i) An exemption,
(ii) Reduction in rate, or
(iii) Other modification,
In respect of income-tax
(i) In favour of any class of income, or
(ii) In regard to the whole or any part of the income of any person or class of persons.
In exercise of the powers conferred by this section, the Central Government passed the Merged States( Taxation Concessions) Order, 1949.
The delegation of the power to the Central Government under section 60-A was occasioned because the Legislature envisaged that the extension of this Act to the merged territories was likely to create hardship and anomalies and difficulties, which it may be necessary and expedient to avoid or remove.
Since it was not possible nor practicable for the legislature itself to examine the vast number of cases that might arise and provide for them in the legislation, it left the work to its delegate namely, the Central Government, by empowering it to do so by a general or special order. In doing so, it laid down-
(i) The circumstance under which the power could be exercised,
(ii) The policy underlying the exercise of the power, and
(iii) The limits within which the power had to be exercised.