High Court grants condonation of delay in Income Tax Revision Petition

The High Court of Bombay allowed the petitioner's applications for condonation of delay in filing a Revision Petition under Section 264 of the Income Tax Act, 1961. The Court found that the delay of 198 days was adequately explained by heavy workload, erroneous advice, and the indisposition of personnel. Emphasizing substantial justice over technicalities, the Court directed the Commissioner to decide the Revision Applications promptly to prevent further litigation.

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Issues:
Challenge to order dismissing request for condonation of delay in filing a Revision Petition under Section 264 of the Income Tax Act, 1961.

Analysis:
The High Court of Bombay heard two petitions for final disposal, both arising from a common background. The petitioner challenged an order by the Principal Commissioner of Income Tax, Mumbai, dismissing the request for condonation of delay in filing a Revision Petition under Section 264 of the Income Tax Act, 1961. Previously, the petitioner's attempt to persuade the Commissioner to condone the delay had failed, leading to a writ petition being filed. The High Court had quashed the Commissioner's order, allowing the petitioner to file a separate application for condonation of delay. The Commissioner rejected this subsequent application, prompting the current petition. The High Court, after hearing both parties and examining the record, found that the Commissioner erred in rejecting the applications for condonation of delay. The delay in filing the Revision Application was 198 days, which the petitioner explained was due to a heavy workload, erroneous advice from a tax consultant, and the indisposition of the person handling the affairs of a new consultant. The Court emphasized the principle that substantial justice should prevail over technicalities, especially when the delay was not excessive and was adequately explained. Given the circumstances, the Court allowed the petitioner's applications for condonation of delay and directed the Commissioner to expeditiously decide the Revision Applications on their merits, aiming to avoid further unnecessary litigation. The petitions were disposed of accordingly.

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