2015 (1) TMI 1278 - AT - Income Tax

Condonation of delay - Held that - It is not a fit case where the delay can be condoned. Similar view has been taken by the Hon ble Delhi High Court in the case of Surinder Kumar Boveja vs. CWT (2006 (5) TMI 73 - DELHI High Court ) wherein held that in order to get condonation of delay in filing of an appeal a party has to show sufficient cause. Sufficient cause means a cause beyond the control of the party e.g. a mistake made in good faith in respect of exercise of due care and attention. But where there is want of due care and attention or want of due diligence or sufficient cause the delay cannot be condoned. The delay in filing the appeal is abnormal.

Summary

Issues: Rejection of Registration u/s 12A of the Income Tax Act, 1961 leading to appeal being barred by limitation.

Analysis:
1. The appeal was filed against the rejection of Registration u/s 12A of the Income Tax Act, 1961, with a delay of more than 997 days, leading to the issue of limitation being raised.
2. The Assessee argued that the delay was due to lack of awareness regarding the law's requirement for Registration and exemption of income u/s 11. An Affidavit was submitted stating the Assessee's unintentional delay due to a genuine belief in entitlement for exemption.
3. The Departmental Representative contested the condonation of delay, leading to a hearing and consideration of both sides' submissions.
4. The Tribunal noted that while it has the power to condone delay under valid reasons, negligence or ignorance of the law by the Assessee cannot be accepted as sufficient grounds. It was emphasized that every citizen must know the laws governing them, especially in the case of a Trust seeking benefits under the Income Tax Act. The Tribunal found discrepancies in the Assessee's arguments, lack of necessary documentation, and failure to provide substantial reasons for the delay. Citing a similar case from the Delhi High Court, the Tribunal concluded that the delay could not be condoned, ultimately dismissing the appeal.
5. Referring to previous judgments, including one by the Supreme Court, where delays were not condoned, the Tribunal upheld the dismissal of the appeal due to being time-barred.
6. The final order dismissing the appeal was pronounced in open court on 07/01/2015, highlighting the conclusion of the case.

This detailed analysis of the judgment outlines the issues surrounding the rejection of Registration u/s 12A of the Income Tax Act, the arguments presented by both parties, the Tribunal's considerations, and the ultimate decision to dismiss the appeal based on the limitation period.