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TMI Blog2020 (9) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... on the merit of the appeals. Exemption u/s 11 - trust for registration u/s 12AA and exemption u/s 80G rejected - assessee failed to justify genuineness of its activities - CIT(E) asked the assessee to file certain documents, inter alia documents of the ownership of plot of land and its arrangement of transfer etc., but the assessee failed to submit said documents - HELD THAT:- Before us, assessee has produced all the documents, which were requested by the Ld CIT(E). These documents are available on page 1 to 10 of the paper-book. Counsel accordingly requested for restoring the matter back to the file of the Ld. CIT(E). DR, on the other hand, submitted that the opportunity provided by the Ld. CIT (E) were not availed by the assessee and therefore if the assessee is allowed to go back to the Ld CIT(E), the assessee should be directed to file all the documents and co-operate before the Ld. CIT(E) in disposal of the proceedings . In view of the documents produced before us as additional evidence, we feel it appropriate to set aside the order of the Ld. CIT (E) and restore the issue of registration under section 12AA and exemption under section 80G, back to the file of the Ld CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication u/s 80G. 3. Briefly stated facts of the case are that the applications filed by the assessee trust for registration under section 12AA of the Act and exemption under section 80G of the Act, have been rejected by the Ld. CIT(E) on the ground that the assessee failed to justify genuineness of its activities. The Ld.CIT(E) asked the assessee to file certain documents, inter alia documents of the ownership of plot of land and its arrangement of transfer etc., but the assessee failed to submit said documents, which resulted in rejection of registration under section 12AA and consequent exemption under section 80G of the Act. 3.1 Aggrieved, the assessee filed appeals before the Income Tax Appellate Tribunal (in short the Tribunal), raising the grounds as reproduced above. 4. Before us, the parties appeared through videoconferencing facility and filed paper-book and another documents electronically. 5. At the outset, the Ld. Counsel submitted that these appeals have been filed with the delay of 158 days. The learned Counsel referred to the application for condonation of the delay and submitted that Sh. Naresh Kumar Gupta, the Settler/Managing trustee was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d after the prescribed period if the appellant or the applicant satisfies the court that he had sufficient cause for not preferring the appeal or making the application within such period. (ii) Ordinarily a litigant does not stand to benefit by lodging an appeal late. (iii) 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. (iv)When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non- deliberate delay. (v) There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious risk. (vi) The Rules of limitation are not meant to destroy the rights of parties. They are meant to see that parties did not resort to dilatory tacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purposes of the act. 4. It is therefore submitted that nowhere in the Act is it provided that only the Settler of the Trust can file an appeal before the Hon Tribunal. Even if the settler was unwell, that did not preclude the other Trustees/Principal Officer/Treasurer etc from filing the appeal within time. There is no Reasonable Cause in this case, which entitles the assessee to be condoned for the delay of more than 5 months in filing of this appeal. 5. The following case laws are relied upon in this regard- (I). Ajmeer Sheriff and co. 375 ITR 15 (Madras High Court) , wherein the Tribunal haddeclined to condone delay for reasons that i) allegation regarding ill-health of managing partner and multiple medical complications was bereft of details and every day's delay had not been explained, and ii) even if one of partners was not well, other partners could have taken steps to file appeal in time. The Hon Madras High Court held that when conduct on part of the assessee exhibited gross negligence/procrastinating attitude and incorrect grounds, the Tribunal rightly dismissed petition to condone delay. (II) . Esha Bhattacharjee vs Managing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... email address of the son of Sh. Naresh Kumar Gupta, and thus other Trustees were not aware of the Income-Tax proceedings of the trust. In our opinion, the illness of settler and managing trustee and the impugned order being not in the reach of other trustees, is a reasonable cause for delay in filing the appeals. By making the delay, the assessee trust does not get benefit in any manner. The delay is not deliberate and there is not any kind of malafide on the part of the assessee trust. In view of the facts and circumstances and in the interest of the substantial justice, we condoned the delay in filing these appeals and the parties were asked to argue on the merit of the appeals. 6. We have heard argument of the parties on the merit of the issues in the appeals. We find that in the impugned orders, the Ld. CIT(E) has rejected registration under section 12AA and exemption under section 80G mainly on the ground that the assessee failed to produce certain documents asked for by the Ld CIT(E ). Before us, the Ld. Counsel of the assessee has produced all the documents, which were requested by the Ld CIT(E). These documents are available on page 1 to 10 of the paper-book. The Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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