Revisional delay under agricultural income-tax law justified where defect was noticed later and rectification was considered unsuitable.

Revisional proceedings under section 34 of the Kerala Agricultural Income-tax Act, 1950 were challenged as time-barred for unreasonable delay after the assessment order. The Commissioner stated that the defect in assessment was noticed only later, after the period for escaped assessment had expired, and considered rectification under section 36 unsuitable because the error might not be a mistake apparent on the face of the record. On that explanation, the delay was treated as justified rather than unreasonable, and the challenge failed; the revisional order was upheld against the assessee.

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Issues: Whether the revisional proceedings initiated under section 34 of the Kerala Agricultural Income-tax Act, 1950, were liable to be quashed for unreasonable delay in initiating action after the assessment order.

Analysis: The assessment order was passed on 21 March 1986 and the revisional notice was issued on 18 October 1989 after the Commissioner detected the defect in assessment. The earlier order had been set aside for want of proper consideration of the reasons for the delay. In the fresh order, the Commissioner explained that the defect was noticed only after the period for escaped assessment had expired and that rectification under section 36 was not considered appropriate because the error might not qualify as a mistake apparent on the face of the record. The delay, if any, was thus supported by reasons and was not found to be unreasonable.

Conclusion: The challenge based on unreasonable delay failed and the revisional order was upheld against the assessee.

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