2014 (4) TMI 778 - AT - Income Tax

Rejection of application of approval u/s 80G(5)(vi) of the Act No details or documents furnished - Condonation of delay - delay of 49 days - Held that - The assessee was failed to produce any copy or evidence of any representation which was filed by the assessee before the DIT(E) - Any application/representation etc., whether maintainable or not maintainable, can be filed before him in writing and not orally the assessee has taken a false plea of filing any such representation - Though the period of delay is 49 days only but the assessee should have come with clean hands before the Tribunal with a reasonable explanation as to what prevented it from filing the appeal assessee has failed to explain as to which of the finding arrived at by the DIT(E) was wrong or not justified - Even no details or documents have been produced before us in support of the claim of the assessee trust - no copy of objects of the trust has been furnished before us despite a specific query by us in this respect thus, there is no reason to interfere in the order of DIT(E) Decided against Assessee.

Summary

Issues:
1. Delay in filing the appeal for grant of approval under section 80G(5)(vi) of the Income Tax Act.
2. Merits of the case regarding rejection of the application by the Director of Income Tax (Exemptions).

Issue 1: Delay in Filing the Appeal
The appeal filed by the assessee against the order of the Director of Income Tax (Exemptions) was found to be time-barred by 49 days. The assessee sought condonation of delay, attributing it to the rejection of approval for non-attendance and subsequent representation made before the Director. However, the Tribunal noted that the assessee failed to provide any evidence of such representation, indicating a false plea. The Tribunal emphasized the importance of coming clean with a reasonable explanation for the delay. Despite the delay being 49 days only, the Tribunal found the lack of a convincing explanation and false plea as grounds to dismiss the appeal.

Issue 2: Merits of the Case
The Director of Income Tax (Exemptions) rejected the application on the grounds that the assessee trust was not engaged in charitable activities and focused solely on the "Bhandary Community." Additionally, the trust did not submit essential details such as bank transaction summaries, audit accounts, donation details, and failed to meet the requirements of section 80G(5)(vi). During the hearing, the assessee's representative could not provide the necessary details or challenge the findings of the Director. Despite specific requests, no supporting documents or objects of the trust were presented. Consequently, the Tribunal upheld the Director's decision, stating that there was no reason to interfere with the rejection of the application even on the merits of the case.

In conclusion, the Appellate Tribunal ITAT MUMBAI dismissed the appeal filed by the assessee against the rejection of approval under section 80G(5)(vi) of the Income Tax Act due to a time-barred filing and lack of merit in the case. The Tribunal highlighted the importance of providing genuine explanations and supporting evidence in legal proceedings to ensure transparency and fairness in the judicial process.