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TMI Blog2006 (9) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... nths during 2000-01 the assessee did not have a Secretary. The assessee came to know about the need for registration only in October 2001 when the person entrusted to perform the functions of Secretary learnt of it from other organisations in the field and immediately thereafter it applied for registration with a prayer for condonation of delay. There is no reason to disbelieve the said explanation. The commitment and involvement of the assessee's office bearers and members in charitable work since inception cannot be disputed. The assessee did not even have a Secretary during a large part of the financial year 2000-01. It is not implausible that all the persons who were heavily involved in the charitable work may not have addressed themselves to taxation aspects and bona fide proceeded on the commonsense point of view that there was no tax obligation since no income was being earned and the assessee was only spending contributions received for charitable purposes. There is nothing to suggest any deliberate or intentional delay in filing the application for registration. The assessee had nothing to gain by delaying the application. The assessee applied for registration as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contributions from the Hope Foundation, Ireland for its objects. The Central Government granted such permission. The assessee also submitted to the Central Government full details about the utilization of the foreign contribution received by it. (c) In the year 1999 itself, the assessee set up a Home in Kolkata for street and abandoned children. (d) Due to unprecedented floods in the city of Kolkata in the year 1999, there was a serious outbreak of Malaria. In November, 1999, the assessee set up a clinic for treatment of malaria patients and the more serious cases were referred to Hospitals and Nursing Homes. The said clinic continued till June, 2000. (e) Mrs. Sheila Banerjee was the Secretary of the assessee. She went abroad in November, 2000. After her departure, the assessee did not have any Secretary. (f) After the earthquake in Bhuj, Gujarat, the office bearers and members of the assessee, with the permission of the Central Government, got fully involved in earthquake relief work from 28-1-2001. Such relief work continued till 31-3-2002. (g) All the office bearers and members of the assessee were fully involved in charitable work since the inception of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of registration under section 12AA, the assessee sought advice from Sri K.V. Singh, Advocate who pointed out to the assessee for the first time that the provisions of section 253(1)(c) of the Act were amended with effect from 1-6-1999 to provide for an appeal before the Tribunal against an order passed under section 12AA. Sri K.V. Singh, Advocate advised that the filing of the rectification application and pursuing the same was not the appropriate remedy and the proper course was to file an appeal before the Tribunal along with an application for condonation of the delay. (n) The office bearers and members of the assessee are not conversant with the provisions of the Act and were not aware about the appeal provision introduced in the Act with effect from 1-6-1999. Even Shri K.B. Roy, Advocate, whom the assessee had consulted in the year 2002, was not aware of the appeal provision since he did not mention about it and advised the assessee to apply for rectification before the DI(E). The assessee bona fide accepted the advice of Sri K.B. Roy and instructed him to file the application before the DI(E) which he did and waited for its disposal. The assessee again pursued the DI(E) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same at that time. 6. In State of West Bengal v. Administrator, Howrah Municipality [1972] 1 SCC 366 it was held by the Hon'ble Supreme Court that if a party had acted in a particular manner on a wrong advice given by his legal advisor, he cannot be held guilty of negligence so as to disentitle the party to plead sufficient cause. In N. Balakrishnan's case. It was held by the Hon'ble Supreme Court that the rules of limitation were not meant to destroy the rights of parties. They were meant to see that parties did not resort to dilatory tactics but sought their remedy promptly. Condonation of delay was a matter of discretion of the Court. Length of delay was no matter, acceptability of explanation was the only criterion. In every case of delay, there would be some lapse on the part of the litigant concerned. That alone was not enough to turn down his plea and shut the door against him. If the explanation did not smack of mala fides or it was not put forth as part of a dilatory strategy, the Court must show utmost consideration to the suitor. But when there is reasonable ground to think that the delay was occasioned by the party deliberately to gain time, then the Court should le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot stated in his order dated 12-11-2001. 9. On behalf of the assessee it was submitted that the reasons which prevented the assessee from making the application within the period of one year have also been given in the affidavit to which reference has been made earlier. It was submitted that there was no dispute about the assessee's entitlement to registration under section 12AA and that it had fulfilled all the conditions in that behalf. Registration has in fact been granted with effect from 1-4-2001 and the assessee is only claiming that it should be granted from 4-10-1999 since there were sufficient reasons which prevented it from making the application within the period of one year. Reliance was placed on an unreported decision of the Tribunal in <?xml:namespace prefix = st2 /> St. Stephens School v. DIT(Exemptions) [IT Appeal No. 2137 (Kol.) of 2003, decided on 7-4-2004]. 10. On behalf of the revenue, the learned Departmental Representative supported the order of the DI(E). 11. In N. Balakrishnan's case it was held by the Hon'ble Supreme Court that in a case where the first court refused to condone the delay, the Superior Court would be free to consider the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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