INCOME TAX ACT, 1961

Section 253(5)

Appeal (Tribunal) - Condonation of delay - Non-adducing of sufficient and reasonable cause -

CIT granted registration Order dated 23-6-2014 to the assessee trust under section 12AA with effect from assessment year 2015-16, instead of date of filing of original application in Form No. 10A, which was applicable from the assessment year 1997-98. Aggrieved against the same, assessee was in appeal before ITAT with a delay of 1379 days in filing of appeal. The Affidavit in support of condonation of delay stated that assessee trust was not properly advised by the then consultant and trustees had no knowledge of provisions relating to registration under section 12A(a) as well as provisions relating to filing of appeal. Held: As evident from record, assessee-trust was created as on 16-3-1996 and registered with the Charity Commissioner. The assessee's claim of its application filed in Form No. 10A on 20-9-1996 was not acted upon by the Pr.CIT for granting exemption under section 12A(a). The assessee made reminders on 1-11-2001, 12-10-2002, 10-4-2003 but thereafter no action from assessee in pursuing its registration under section 12A (a). It was based on application dated 23-6-2014 filed by assessee, Registration under section 12AA was granted by Pr. CIT on 12-11-2014 with effect from the assessment year 2015-16. Assessee had not pursued the matter immediately after filing its application and moved with the CIT office after a long period of time. The main object of assessee-trust was to render services to Exporters and Importers. It was not acceptable as to how the assessee was so negligent in not claiming its legal rights. Considering the various amendments taken place in the act, assessee's contention of granting exemption under section 12A could not be given retrospectively. The claim of exemption being a beneficial provision, assessee ought to have acted upon and followed up with the authorities in the manner known to law. Having kept silent for such a long period, assessee was not eligible for the retrospective benefit. In the result, delay of 1379 days was not condoned for not adducing sufficient and reasonable cause and, therefore, appeals were dismissed.

Followed:CIT v. Hemla Trust (2018) 98 Taxmann.com 293 (Mad-HC) : 2018 TaxPub(DT) 6441 (Mad-HC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2015-16

INCOME TAX ACT, 1961

Section 11

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