By TIOL News Service

AHMEDABAD, MAY 29, 2018: THE issue is - Whether when relevant Act provides power to authorities for condoning the delay then minor delay on part of the assessee in filing revision petition, if supported by reasonable explanation, can be allowed. YES IS THE VERDICT.

Facts of the case:

The assessee, an individual, had filed return for the relevant AYs. During the assessment proceeding, the AO decided the question in respect with depreciation on the cold storage plant against the assessee by stating that the return tune value of the such plant had to be reduced by the subsidy granted by the Govt. Accordingly, the assessee had filed a Revision Petition before the Pr. Commissioner concerning assessment orders for the relevant AYs. However, such petition was dismissed by the Pr Commissioner on the ground that the assessee failed to explain the delay of nine days.

High Court held that,

++ Sec. 264(3) of the Act while prescribing period of limitation, gives ample power to the PCIT to accept an application filed beyond such period on sufficient grounds being made out. In the present case, delay was extremely small. It is true that the assessee did not set out ground to explain such delay either by filing a separate application or even in the revision petition. However, if the PCIT was of the opinion that even such minuscule delay in absence of any explanation should be fatal to the Revision Petition, list he could have done was to put the assessee to notice calling upon her to explain delay or face dismissal of the Revision Petition;

++ period of limitation for perusing remedies is provided under the statute to regulate the proceedings and to ensure finality beyond a reasonable period. Wherever the legislation desires that the period of limitation should be non-extendable, the intention is manifest in clear terms. In the present case, there is a clear provision for condoning the delay. Defeating the right of revision on the ground of unexplained delay in facts of the present case, could have been avoided by allowing the assessee to file additional statement explaining such delay. When the delay is extremely small, it can be condoned.

(See 2018-TIOL-997-HC-AHM-IT)