Law: Income Tax Act, 1922

Section: 33-A

Income-tax----Revision - Commissioner - Delay in making application-Explanation of delay for entire period necessary Income-tax Act, 1922, S. 33-A. The appellant had entered into forward contracts for purchase of jute. By the end of January 1952, the price of jute fell heavily and the transactions were settled at a loss in March 1952. Payments made under the settlement amounting to Rs. 4,71,375 were recorded in the appellant's books for the year ending March 31, 1953, and the appellant claimed the loss on these transactions for the assessment year 1953-54. The Income-tax officer disallowed the loss on the ground that it was speculative but tile Appellate Assistant Commissioner held that the loss was not a speculative loss. On further appeal, the Tribunal permitted the department to raise a new point, viz., that since the settlements were made in March 1952, the loss was not allowable in the assessment year 1953-54, and the Tribunal accepted the Department's case by its order dated July 7, 1964. On August 21, 1964, the appellant applied to the Commissioner under section 33-A of the Income-tax Act, 1922, for revision of the assessment for assessment year 1952-53 completed in January 1956, on the basis of the Tribunal's order for the year 1953-54. The Commissioner dismissed the application on the ground that it was out of time and no satisfactory explanation had been given for the delay. On appeal by special leave to the Supreme Court: Held, arming the decision of the Commissioner, that the application under section 33-A was completely barren of any explanation for the delay between July 7, 1964, and August 21, 1964, and that delay had also to be properly and satisfactorily explained.  …