Non-speaking refusal to condone delay in penalty proceedings quashed for failure to consider the application on merits.

A Commissioner's refusal to condone delay in penalty proceedings under section 271(4A) was held defective because it was rejected solely on the basis that the assessee had been assessed in earlier years, without considering the application on merits. The order was treated as a jurisdictional error and a non-speaking decision for want of reasons. The impugned order was quashed, and the matter was remitted for fresh consideration on merits in accordance with law.

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Issues: Whether the Commissioner's order rejecting the petitioner's application under section 271(4A) of the Income-tax Act, 1961 was liable to be set aside for failure to exercise jurisdiction and for being a non-speaking order.

Analysis: The challenge was to the Commissioner's refusal to condone delay in relation to the penalty proceedings. The order was found to be defective because it declined relief on the sole ground that the assessee had been assessed to tax for earlier years, without considering the application on its merits. Such an order was treated as suffering from a jurisdictional vice and as lacking reasons.

Conclusion: The impugned order was quashed and the matter was directed to be reconsidered afresh on merits according to law.

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