2020 (1) TMI 1152 - HC - Income Tax

Condonation of delay of 253 days in filing the appeal by the assessee - cancellation of the registration of the assessee as a Charitable Trust under section 12AA(3) - HELD THAT - We are of the opinion that Tribunal was not justified in refusing to condone the delay of 253 days in filing the appeal by the assessee. We are of the further view that it would be in the interest of justice if the appeal of the assessee is heard and decided on its own merit; after all, the issue relates to cancellation of the registration of the assessee as a Charitable Trust under section 12AA(3) of the Act.

Summary

Issues:
- Delay in filing the appeal by the assessee
- Tribunal's refusal to condone the delay
- Justification of condoning the delay
- Interest of justice in hearing the appeal on its merit

Analysis:
The judgment by the Bombay High Court dealt with an appeal against the order of the Income Tax Appellate Tribunal, Pune Bench, regarding the cancellation of registration of the assessee as a Charitable Trust under section 12AA(3) of the Income Tax Act, 1961. The primary issue revolved around the delay of 253 days in filing the appeal, leading to the Tribunal dismissing the appeal as time-barred due to inconsistencies in the affidavits filed by the assessee. The appellant contested that the delay was adequately explained and should have been condoned, while the Revenue standing counsel supported the Tribunal's decision based on the lack of sufficient cause shown by the appellant.

Upon reviewing the materials and affidavits submitted, the High Court found that the Tribunal's refusal to condone the delay was unjustified. The Court emphasized the importance of justice and decided that the appeal should be heard and decided on its merits, considering the significant issue of the cancellation of the charitable trust registration. Consequently, the High Court set aside the Tribunal's order, condoned the delay, and directed the appellant to deposit a sum with the Maharashtra State Legal Services Authority before the Tribunal proceeds to hear and decide the appeal on its merits. The judgment clarified that no opinion on the merit was expressed, keeping all contentions open for further consideration.

In conclusion, the High Court's decision highlighted the necessity of considering the interest of justice in matters involving significant legal implications, emphasizing the importance of a fair hearing and due process in tax-related disputes.