Law: Income Tax Act, 1961

Section: 256

Income-tax--Application for reference---Delay of 26 days in filing application---Section 256 allows condonation of delay up to 30 days after tine limit---Provisions for condonation of delay to be liberally construed--­Finding that delay was due to mistake of counsel---Delay condoned---Indian Income Tax Act, 1961, S.256. There was a delay of 26 days in filing an application for reference under section 256(1) of the Income-tax Act, 1961. The application for reference was tiled along with a petition to condone the delay. The Tribunal rejected the application for condonation of delay. On a writ petition filed for quashing the order Held, that under section 256 of the Act, the application for reference has to be filed within 60 days from the date if was served and the proviso therein contemplates condoning the delay up to period of 30 days. It was evident from the affidavit that the delay had occurred due to misplacement and not tracing the original order in the office of counsel. The delay aspect had to be liberally considered so as to provide an opportunity to the parties to have a decision on the merits. In this case, the Tribunal fell into error in expecting an explanation for delay even for the days within the limitation period. Moreover, a, party should not suffer for the lapses on the part of counsel, specially when the delay is not too long. The explanation and the reasons given in the affidavit did not give scope for any doubt as to bona fides. The delay had to be condoned. JUDGMENT B. PRAKASH RAO, J.---This writ petition is filed against the orders rejecting the application filed for condonation of delay of 26 days in seeking reference under section 256(1) of the Income Tax Act, 1961. A common order in the appeals filed by the petitioner was passed by the Tribunal on November 25, 1997, for the assessment years 1988-89 and 1989-90 which was received by counsel for the petitioner on December 20., 1-997. The last date for filing application seeking reference was February 8, 1998. However, the application was filed on March 6,1998, with a delay of 26 days and an application seeking…

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