Condonation of delay may be justified where pending statutory proceedings reasonably prevented earlier filing of revision petitions.

Delay in filing revision petitions under section 33A(2) of the Indian Income-tax Act, 1922 may be condoned where pending statutory proceedings in excess profits tax reasonably prevented earlier recourse to revision. The Delhi HC held that the delay was not due to mere inaction, because the petitions were filed after revised assessment orders and after the assessee had exhausted the remedies available under the excess profits tax law. The view that revision should have been sought immediately on reopening notices was rejected. The refusal to condone delay was set aside and the matter remitted for fresh consideration of condonation.

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Issues: Whether the delay in filing the revision petitions under section 33A(2) of the Indian Income-tax Act, 1922 was liable to be condoned on the facts of the case.

Analysis: The revision petitions were filed while the excess profits tax proceedings arising from the reopened assessments were still being pursued through the appellate hierarchy. The delay was not attributable to mere inaction, since the petitions were moved after the revised assessment orders had been made and the assessee had exhausted the statutory remedies available under the excess profits tax law. The pendency of those proceedings constituted a sufficient cause for not moving the revisional applications earlier. The view that the assessee ought to have applied for revision immediately upon the reopening notices was rejected as unsustainable.

Conclusion: The refusal to condone delay was set aside and the question of condonation was required to be reconsidered afresh by the Commissioner.

Final Conclusion: The writ petition succeeded to the extent that the impugned order was quashed and the matter was sent back for fresh consideration of condonation of delay.

Ratio Decidendi: Delay in filing a revision petition may be condoned where the assessee shows sufficient cause arising from pending statutory proceedings that reasonably prevented earlier recourse to revision.

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