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TMI Blog2012 (11) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... things have not advised the assessee regarding the person to whom the application should have made nor did they forward the application to the correct authority, leading to the delay in filing of application to the correct authority by the assessee - Since there was a sufficient cause for delay in filing the application, The expression “sufficient cause " as decided in case of [Collector, Land Acquisition v Mst. Katiji And Others– 1987 (2) TMI 61 – SUPREME COURT] employed by the Legislature is adequately elastic to enable the courts to apply the law in a meaningful manner which sub serves the ends of justice that being the life-purpose of the existence of the institution of courts. It is common knowledge that the court has been making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had applied for registration u/s 12AA of the IT Act, 1961 before the Director of Income-tax(Exemptions), Hyderabad. 3. The Director of Income-tax (Exemptions), held that by his order dated 04/12/2006 that the application filed is out of time, there being a delay of 6 years 11 months 6 days. The DIT(E) further held that the delay in filing the application has not been explained properly and, hence, the delay was not condoned by him. Accordingly, the said trust was granted registration in the Register meant for application in form No. 10A vide F.No. DIT(E)/Hyd/64(06)/12A/06-07, with effect from 01/04/2006. The DIT(E) held that the registration is subject to fulfillment of the conditions laid down in 12A(a) of the IT Act and the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith him. The Endowments Commissioner has made frequent requests to the Chairman, CBDT having letter Nos. N1/39041/2003 on 12/08/2003, Nos. N!/39041/2003 on 07/11/2003 and Nos. N1/39041/2003 on 22/03/2005 on the contention that the power of granting 100% exemption to the trust from the purview of the income tax lies with the Central Govt. represented by Chairman, CBDT, North Block, New Delhi. Due to the above reasons, the application for registration of the trust u/s 12AA(1)(b)( i) was made on 27/06/2006 with a delay of 6 years 11 months 6 days as during the above period. Finally, the trust was made an application to the Director of Incometax Exemption on 27/06/2006. This registration u/s 12AA(1)(b)(i) has been granted w.e.f . 01/04/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rarchy. And such a liberal approach is adopted on principle as it is realized that: 1. Ordinarily, a litigant does not stand to benefit by lodging an appeal late. 2. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. 3. Any appeal or any application, other than an application under any of the provisions of Order XXI of the Code of Civil Procedure, 1908, may be admitted after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jury so suffered. Time is precious and the wasted time would never revisit. During efflux of time newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a life span must be fixed for each remedy. Unending period for laundering the remedy may lead to unending uncertainty and consequential anarchy. Law of limitation is thus founded on public policy. It is enshrined in the maxim interest reipublicae up sit finis litium (it is for the general welfare that a period be put to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese reasons, the trust could not file the application for registration of trust within the stipulated time before the DIT(E) and the registration has not been granted with effect from 1997-98 till today. The assessee based on his bonafide belief had been approaching the wrong authorities for granting exemption. We also find that the authorities who are in the knowledge of things have not advised the assessee regarding the person to whom the application should have made nor did they forward the application to the correct authority, leading to the delay in filing of application to the correct authority by the assessee. 11. Since there was a sufficient cause for delay in filing the application, we condone the delay and remit the matter back ..... X X X X Extracts X X X X X X X X Extracts X X X X
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