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Issues involved: Application for condonation of delay in seeking reference under section 256(1) of the Income-tax Act, 1961.
Summary: Issue 1: Condonation of Delay The petitioner filed a writ petition against the rejection of the application for condonation of delay of 26 days in seeking reference under section 256(1) of the Income-tax Act, 1961. The Tribunal had passed a common order for the assessment years 1988-89 and 1989-90, received by the petitioner's counsel on December 20, 1997. The last date for filing the reference application was February 8, 1998. The application was filed on March 6, 1998, with a delay of 26 days. The affidavit of the clerk working in the counsel's office explained that the delay was due to misplacement of the original order. The Tribunal rejected the condonation application citing lack of counsel's signature and insufficient reasons for the delay. The High Court observed that under section 256 of the Act, delay can be condoned up to 30 days. The Court emphasized the need to consider delay liberally to ensure parties have a fair chance. It noted that the delay was due to misplacement and not tracing the original order in the counsel's office. The Court held that the Tribunal erred in expecting an explanation for delay even within the limitation period and that a party should not suffer for counsel's lapses, especially for a short delay. The Court found the reasons in the affidavit genuine and allowed the application, setting aside the impugned order and condoning the delay. The writ petition was allowed with no costs. This judgment highlights the importance of considering delay issues in legal proceedings and the need for a liberal approach in condoning delays, especially when genuine reasons are provided.
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