High Court quashes delay refusal orders, directs reconsideration under Income Tax Act Section 264.

The High Court quashed and set aside the orders refusing to condone a 10-year and 153-day delay in preferring revision under Section 264 of the Income Tax Act, 1961. The Court directed the respondent to reconsider the applications for condonation of delay, considering all contentions raised by the petitioner, and to issue a speaking order. The petitioner or their representative was required to appear before the respondent on a specified date. The rule was made absolute with no order as to costs.

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Issues involved: Challenge to orders refusing to condone delay in preferring revision under Section 264 of the Income Tax Act, 1961.

Analysis:
The petitioner challenged two orders dated 29th October, 2009, and 28th October, 2009, which refused to condone a delay of 10 years and 153 days in preferring revision under Section 264 of the Income Tax Act, 1961. The petitioner argued that they delayed seeking remedy under Section 264 upon receiving retrospective approval based on advice to wait until the issue was settled. The High Court noted that the respondent did not consider whether the petitioner was justified in waiting for the final decision before seeking revision. The Court found that this crucial aspect was not addressed by the respondent, rendering the impugned orders liable to be quashed and set aside.

The High Court held that the impugned orders of 29th October, 2009, and 28th October, 2009, were quashed and set aside. The respondent was directed to reconsider the applications seeking condonation of delay and to pass a speaking order, taking into account all contentions raised by the petitioner in accordance with the law. The petitioner or their representative was instructed to appear before the respondent on 28th February 2011 at 11:00 a.m. The rule was made absolute in the aforementioned terms with no order as to costs.

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