Condonation of delay under amended Section 260-A allowed recall of a time-bar dismissal and restoration of the appeal.

Section 260-A of the Income-tax Act, 1961 was amended to insert sub-section (2-A), expressly enabling the High Court to admit an appeal filed beyond 120 days on sufficient cause being shown. In light of that statutory power, an earlier order dismissing the appeal as time barred could not stand and was recalled. The appeal was restored to its original number for listing in accordance with roster. The legal point is that where the statute authorises condonation of delay, a prior refusal based on absence of such power may be revisited and withdrawn.

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Issues: Whether the earlier order dismissing the appeal as time barred was liable to be recalled in view of the amendment to Section 260-A of the Income-tax Act, 1961 introducing power to admit an appeal after the prescribed period on sufficient cause being shown.

Analysis: The application sought review of the prior dismissal order on the basis that Section 260-A had been amended by insertion of sub-section (2-A), which expressly empowered the High Court to admit an appeal filed beyond the period of 120 days if sufficient cause for delay was shown. The amendment was stated to have been brought into force with effect from 01.10.1998, and there was no serious opposition to the prayer for recall.

Conclusion: The earlier order was recalled and the appeal was restored to its original number for listing according to roster.

Final Conclusion: The review application succeeded, resulting in revival of the appeal for further hearing.

Ratio Decidendi: Where the statute confers power on the High Court to admit a delayed appeal on sufficient cause being shown, an earlier dismissal on the ground of want of power to condone delay cannot survive and is liable to be recalled.

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