Bona fide pursuit of an alternative statutory remedy justified delay condonation, and withdrawal of revision did not bar appeal.

Withdrawal of a revision petition under section 264 did not bar the assessee's statutory appeal, so the first appellate authority's jurisdiction remained intact and the appeal was maintainable. A delay of 331 days in filing the appeal was also condoned because the assessee had bona fide pursued an alternative remedy recognised by law, and that pursuit constituted sufficient cause. The matter was therefore restored to the first appellate authority for decision on merits.

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Issues: (i) Whether the assessee's appeal before the first appellate authority was maintainable after withdrawal of the revision petition under section 264 of the Income-tax Act, 1961. (ii) Whether the delay of 331 days in filing the appeal deserved condonation on the ground that the assessee had pursued an alternative remedy.

Issue (i): Whether the assessee's appeal before the first appellate authority was maintainable after withdrawal of the revision petition under section 264 of the Income-tax Act, 1961.

Analysis: The appeal was held to remain maintainable despite the earlier invocation and later withdrawal of the revision remedy. The filing of a revision petition was not treated as a bar to the statutory right of appeal once the revision petition stood withdrawn.

Conclusion: The issue was decided in favour of the assessee, and the appeal was held maintainable.

Issue (ii): Whether the delay of 331 days in filing the appeal deserved condonation on the ground that the assessee had pursued an alternative remedy.

Analysis: The delay was accepted as having been sufficiently explained because the assessee had bona fide pursued an alternative remedy available in law. The absence of any finding that the revision proceedings were not bona fide supported condonation of the delay.

Conclusion: The delay was condoned in favour of the assessee.

Final Conclusion: The matter was restored to the first appellate authority for decision on merits after condonation of delay, and the assessee obtained the procedural relief sought.

Ratio Decidendi: Pursuit of a bona fide alternative statutory remedy can constitute sufficient cause for condonation of delay, and withdrawal of a revision petition does not by itself bar a statutory appeal.

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