2012 (4) TMI 88 - AT - Income Tax

Appeal against the order passed by the CIT(A) that the appellant is a Govt - institution established for public charitable purposes and ought to have considered exemption u/s 11 of the IT Act - the expenditure incurred by the appellant in the light of the provisions of section 36(1)(xii) of the Act delay of filing of return for 2003-04 and 2004-05 - The assessee filed petitions for condoning of delays - reasons for delay communicated were that assessee income was assessed under 143 and 147 being aggrieved filed an appeal and ld. CIT(A) disposed of the said appeal and the Secretary was not working at the relevant time - the matter was entrusted to other lawyer who not in the knowledge of the Income-tax matters, Commissioner and Director of Agriculture, Hyderabad advised to claim exemption u/s 11 of the IT Act and for this purpose seek registration of the AMC under section 12AA of the IT are required to file the returns of income, the Secretary was under the bonafide impression that once the registration is granted, it could claim exemption u/s 11 of the IT Act. Therefore, no appeal was filed before the Hon ble ITAT against the appellate order of the ld. CIT(A) Held that - the reasons advanced by the assessee do not show any good and sufficient reason to condone the delays of more than 1500 days - The delays are not properly explained by the assessee appeals filled by assessee dismissed

Summary

Issues:
- Appeal against separate orders by CIT(A)-IV, Hyderabad for assessment years 2003-04 and 2004-05.
- Delay of 1559 days in filing appeal for 2003-04 and 1529 days for 2004-05.
- Grounds raised by the assessee related to exemption under section 11 of the IT Act and utilization of market fee.
- Contention on condoning delay by the assessee and opposition by the departmental representative.
- Application of principles for condonation of delay as per legal precedents.
- Decision on whether to condone the delays and admit the appeals.

Analysis:
The appeals were filed against separate orders by CIT(A)-IV, Hyderabad for assessment years 2003-04 and 2004-05. The assessee raised common grounds related to the erroneous nature of the orders, claiming exemption under section 11 of the IT Act as a Govt. Institution for public charitable purposes, and arguing that the market fee collected did not represent income under specific provisions. The appeals were clubbed and heard together due to common grounds for convenience.

Regarding the substantial delays of 1559 days for 2003-04 and 1529 days for 2004-05 in filing the appeals, the assessee sought condonation, attributing the delays to genuine reasons such as confusion post-amendment in tax laws and seeking registration under section 12AA of the IT Act. The departmental representative opposed the condonation, leading to a detailed analysis by the Tribunal.

The Tribunal considered legal principles for condonation of delay, emphasizing the need for a pragmatic approach and substantial justice. Citing precedents, including the Supreme Court's stance on distinguishing between inordinate delays and minor delays, the Tribunal highlighted the importance of diligence and avoiding negligence in seeking relief. The Tribunal stressed that delays cannot be condoned out of sympathy or benevolence, requiring a clear demonstration of diligence and reasons beyond the assessee's control.

Ultimately, the Tribunal found the reasons presented by the assessee insufficient to justify condoning delays exceeding 1500 days. The Tribunal concluded that the delays were a result of negligence and inaction that could have been avoided with due care and attention. Consequently, the appeals were dismissed, emphasizing the lack of merit in the arguments put forth by the assessee.