Condonation of delay and interest waiver under Circular No. 670 require independent scrutiny; blanket refusal could not stand.

Refusal to condone delay in filing returns and to waive interest under sections 234A, 234B and 234C under Circular No. 670 required an independent examination of whether the delay was beyond the assessee's control. Where the Commissioner had already accepted, for one assessment year, that the delay was not attributable to the assessees, a blanket refusal for the remaining years could not stand without fresh consideration of condonation or reference to the Board. The impugned order was set aside and the matter was remitted to the Commissioner for a fresh decision within six months.

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Issues: Whether the refusal to condone the delay in filing the returns and the consequential refusal to waive interest under sections 234A, 234B and 234C for the assessment years in question was sustainable under Circular No. 670 dated 26.10.1993.

Analysis: The circular contemplated consideration of belated returns where the delay occurred for reasons beyond the control of the assessee and enabled the Commissioner to refer the matter to the Board where the conditions were otherwise satisfied. The record showed that in respect of one assessment year the Commissioner had accepted that the delay was not attributable to the petitioners. In that situation, a uniform refusal across the remaining years could not be sustained without an independent examination of whether the delay was liable to be condoned or the matter required reference to the Board.

Conclusion: The impugned order was set aside and the matter was remitted to the Commissioner of Income-tax for fresh decision on condonation of delay or reference to the Board, with a direction to complete the exercise within six months.

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