2016 (7) TMI 1541 - AT - Income Tax

Condonation of delay - inordinate delay of 1964 days - Registration u/s. 12AA rejected - HELD THAT - No sufficient cause for condonation of such an inordinate delay of 1964 days and accordingly, the appeal of the assessee is not admitted and the same is rejected. Also, we do not think it fit to decide the issue on merit. Thus the appeal of the assessee is dismissed.

Summary

Issues: Delay in filing appeal before ITAT Cochin Bench by 1964 days.

Analysis:
1. The appeal arose from the order of the Ld. Commissioner of Income-tax, Trivandrum under section 12AA of the Income Tax Act. The assessee, a Trust, filed the appeal late by 1964 days, attributing the delay to professional advice and complexities in understanding the legal procedures. The assessee sought condonation of the delay, emphasizing a bona fide belief in income exemption under the Act.

2. The Ld. CIT(DR) opposed the condonation, citing precedents like the Kerala Cricket Association case, where the Tribunal declined to condone a delay of 445 days. The Ld. CIT(DR) also referenced the Bombay High Court's decision in Raju Ramchandra Bhangde vs. CIT, emphasizing that not every mistake of counsel warrants delay condonation.

3. The Tribunal analyzed the facts, noting the inordinate delay of 1964 days. The professionals' understanding of legal complexities alone was deemed insufficient to justify the delay. The absence of a filed affidavit by the professionals further weakened the assessee's case for condonation.

4. Referring to the Kerala Cricket Association case, the Tribunal highlighted the need for sufficient reasons to condone delays, emphasizing that flimsy grounds are inadequate. The Tribunal upheld the denial of condonation in that case, a decision later confirmed by the High Court of Kerala.

5. Citing the Bombay High Court's ruling, the Tribunal reiterated that each case's facts and circumstances determine delay condonation. In this context, the Tribunal found no sufficient cause to condone the substantial delay of 1964 days, leading to the dismissal of the assessee's appeal without delving into the merits of the case.

6. Ultimately, the Tribunal dismissed the appeal, concluding that the delay lacked reasonable cause for condonation. The decision not to admit the appeal was grounded in the legal precedents cited and the insufficiency of reasons provided for the delay. The Tribunal opted not to address the substantive issues, resulting in the dismissal of the assessee's appeal in its entirety.