2016 (5) TMI 191 - HC - Income Tax

Condonation of delay - Held that - Ignorance of law is no excuse. See Swadeshi Cotton Mills Co. Ltd. vs. Government of UP (1972 (11) TMI 78 - SUPREME COURT OF INDIA) The appellant has not made out any ground for condonation of delay of 997 days before the Tribunal. We see no error in the order passed by the Tribunal. Accordingly, the appeal fails and stands dismissed.

Summary

Issues:
1. Appeal challenging the order of the Income Tax Appellate Tribunal being dismissed as barred by limitation.
2. Whether the delay in filing the appeal can be condoned based on grounds of misunderstanding regarding the requirement of registration under Section 12A of the Income Tax Act, 1961.

Analysis:
1. The appellant challenged the order of the Income Tax Appellate Tribunal, which dismissed the appeal as barred by limitation due to a delay of 997 days. The Tribunal found that the appellant failed to provide sufficient justification for the delay, despite claiming misunderstanding about the necessity of registration under Section 12A of the Income Tax Act, 1961. The Tribunal emphasized the importance of complying with legal requirements and dismissed the appeal based on the limitation issue.

2. The appellant argued that the delay should have been condoned by the Tribunal to serve the ends of substantial justice. However, the Tribunal noted that the appellant did not provide any material to support the claim of being wrongly advised regarding the registration requirement. The appellant's failure to disclose the source of advice or respond to the Tribunal's queries weakened their case. The appellant's contention that they were under a genuine impression about the registration requirement was not adequately substantiated.

3. The High Court referred to the principle that ignorance of the law is not a valid excuse for failing to adhere to legal timelines. Citing a Supreme Court judgment, the Court emphasized that individuals are expected to know the law, and ignorance cannot be used as a defense for delays. The Court concluded that the appellant did not present sufficient grounds for condoning the 997-day delay in filing the appeal before the Tribunal. Therefore, the Court upheld the Tribunal's decision to dismiss the appeal as there was no error in the Tribunal's order.

In summary, the High Court upheld the dismissal of the appeal by the Income Tax Appellate Tribunal due to a significant delay, emphasizing the importance of complying with legal requirements and rejecting the appellant's argument of misunderstanding as a valid reason for condonation of the delay.