2016 (4) TMI 1208 - AT - Income Tax

Condonation of delay - Held that - After hearing both sides and perusing the materials on record and the condonation petition filed by the learned Authorized Representative for the delay in filing the appeal for 1902 days, we do not find any merit in the submission made by the learned Authorized Representative. From the conduct of the assessee, it is evident that the assessee is not vigilant in pursuing the appeal and also it appears that the assessee is not serious in complying with the provisions of the Act. Further from the facts of the case, we do not find the assessee to be engaged in activities in accordance with the objects specified in the trust deed. In these circumstances, we do not have any other option but to dismiss the appeal of the assessee in limine by not condoning the delay in filing the appeal. - Decided against assessee.

Summary

Issues:
1. Delay in filing the appeal by the assessee.
2. Condonation of delay in filing the appeal.
3. Rejection of registration under section 12AA of the Act.

Delay in filing the appeal:
The appeal filed by the assessee was found to be barred by a significant limitation of 1902 days. The Authorized Representative sought condonation of the delay, attributing it to the Chartered Accountant's failure to file the appeal within the due date. The Representative argued that the assessee heavily relied on the Chartered Accountant for the appeal process. However, the Departmental Representative opposed the condonation, citing the exorbitant delay. The Tribunal observed that the conduct of the assessee indicated a lack of vigilance in pursuing the appeal and non-compliance with the Act's provisions. It was noted that the assessee did not appear to be engaged in activities aligning with the trust deed's specified objects. Consequently, the Tribunal decided not to condone the delay, leading to the dismissal of the appeal.

Condonation of delay in filing the appeal:
The Tribunal carefully considered the arguments presented by both the Authorized Representative and the Departmental Representative regarding the condonation of the significant delay in filing the appeal. Despite the reasons provided for the delay, including reliance on the Chartered Accountant and subsequent corrective actions taken by the assessee upon realizing the mistake, the Tribunal ultimately concluded that the delay was inexcusable. The Tribunal highlighted the lack of diligence on the part of the assessee and the apparent disregard for complying with statutory provisions as key factors influencing their decision not to condone the delay.

Rejection of registration under section 12AA of the Act:
The appeal was filed by the assessee against the rejection of registration under section 12AA of the Act by the Commissioner of Income Tax. However, due to the significant delay in filing the appeal and the Tribunal's findings regarding the assessee's lack of vigilance and non-alignment with trust deed objectives, the appeal was dismissed without condoning the delay. The Tribunal's decision was based on the assessee's failure to demonstrate seriousness in complying with statutory requirements and engaging in activities consistent with the trust deed's specified objects. Consequently, the rejection of registration under section 12AA of the Act was upheld through the dismissal of the appeal.

This comprehensive analysis of the judgment addresses the issues of delay in filing the appeal, the condonation of such delay, and the rejection of registration under section 12AA of the Act, providing a detailed overview of the Tribunal's decision-making process and considerations.