Delayed export proceeds under tax relief rules require a fair reconsideration when delay may be beyond the exporter's control

Delayed receipt of export proceeds under section 80HHC(2)(a) required fresh consideration where the assessee explained the delay by reference to industry slackness, financial crisis and the Asian currency crisis. The Court found the rejection order unduly rigid because it demanded proof beyond the explanation already on record, despite materials suggesting delay beyond the assessee's control. The impugned order was set aside and the application was remitted to the Commissioner for reconsideration in accordance with law.

---

---

Issues: Whether the application for extension of time for realisation of outstanding export proceeds under section 80HHC(2)(a) of the Income-tax Act, 1961 required reconsideration on the facts and materials on record.

Analysis: The record showed that export proceeds had been received on different dates but with delay. The explanation offered for the delay referred to slackness in the diamond industry, financial crisis, and the Asian currency crisis affecting South-East Asian countries, including devaluation of the Hong Kong dollar. The rejection order was found to have taken an unduly rigid view by insisting on proof beyond the assessee's explanation, even though the circumstances indicated a possible case of delay beyond the assessee's control. The matter therefore required fresh consideration by the Commissioner.

Conclusion: The impugned order was set aside and the application was directed to be reconsidered in accordance with law.

---