2017 (2) TMI 1427 - AT - Income Tax

Condonation of delay - delay of 1278 days in filing the appeal by the assessee - When queried with the Ld. AR it was submitted that the trust had handed over the appeal papers to its auditor for filing the appeal after a delay of 3 years and 6 months. HELD THAT - AR could not justify with any bonafide reasons for the delay in filing the appeal. Therefore we are of the considered view that the assessee does not deserve for condoning the delay in filing the appeal. Hence we hereby dismiss the appeal of the assessee by not condoning the delay in filing the appeal within the stipulated period under the Act. - Decided against assessee

Summary

Issues:
1. Appeal against Commissioner of Income Tax (Appeals) order
2. Accumulation of income under section 11(2) of Income-Tax Act, 1961
3. Delay in filing appeal

Analysis:

1. The appeal before the Appellate Tribunal ITAT Chennai was against the order passed by the Commissioner of Income Tax (Appeals)-XII, Chennai, pertaining to the assessment year 2008-09. The appellant raised four grounds challenging the order, claiming it to be contrary to law and erroneous on the facts and circumstances of the case.

2. The appellant contended that the Form 10 was filed to accumulate and set apart the income of the trust during the assessment proceedings. It was argued that the Assessing Officer should have allowed the accumulation under section 11(2) of the Income-Tax Act and not denied the claim for exemption. The appellant also asserted that the delay in filing the return of income was due to reasonable cause and that Form No.10 had been submitted before the assessment was completed.

3. The brief facts of the case revealed that the assessee, a charitable institution, filed a return of income for the assessment year 2008-09, claiming exemption under section 11 of the Act. The Assessing Officer noted a shortfall in applying 85% of the income for the trust's objects and the absence of Form No.10 seeking permission for income accumulation. The Assessing Officer consequently brought the shortfall to tax, a decision upheld by the Commissioner of Income Tax (Appeals).

4. The Tribunal noted a delay of 1278 days in filing the appeal by the assessee. The appellant attributed the delay to handing over the appeal papers to its auditor, resulting in a delay of 3 years and 6 months. However, the appellant failed to provide valid reasons justifying the delay. Consequently, the Tribunal declined to condone the delay and dismissed the appeal.

5. Ultimately, the Tribunal dismissed the appeal of the assessee due to the uncondoned delay in filing the appeal within the stipulated period under the Act. The order was pronounced on 13th February 2017.