1987 (4) TMI 50 - HC - Income Tax

Summary

Issues:
1. Delay in filing revision petition for assessment years 1965-66 and 1969-70.
2. Claim of depreciation versus revenue expenditure for contributions towards laying service lines.
3. Rejection of revision petition by Commissioner of Income-tax on grounds of delay.
4. Judicial discretion in condoning delay and considering negligence versus oversight.

Analysis:
1. The petitioner filed a special civil application seeking a writ to quash the order of the Commissioner of Income-tax for the assessment years 1965-66 and 1969-70 due to delays in filing revision petitions. The petitioner claimed depreciation for contributions towards laying service lines, later seeking to treat them as revenue expenditure.

2. The petitioner contributed amounts towards laying service lines, claiming depreciation initially. However, realizing potential for revenue expenditure, sought to change the claim. Disputes arose regarding ownership and entitlement to depreciation, leading to appeals and revision petitions.

3. The Commissioner rejected the revision petitions citing delays. The High Court previously condoned delay for the assessment year 1965-66, emphasizing the need for a judicial exercise of discretion. The Division Bench criticized the Commissioner's approach, highlighting substantial injury caused to the petitioner.

4. The Court analyzed the Commissioner's reasoning, noting the petitioner's actions were not indicative of negligence but oversight. The distinction between negligence and oversight in pursuing claims was crucial. The Court emphasized the need for diligence in taking appropriate proceedings, ultimately granting the special civil application, quashing the Commissioner's order, and directing expeditious consideration of the revision application.

This detailed analysis covers the issues of delay in filing revision petitions, the nature of claims for depreciation and revenue expenditure, the rejection of revision petitions by the Commissioner, and the judicial discretion in condoning delays and assessing negligence versus oversight.