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2016 (12) TMI 41 - ITAT DELHI

2016 (12) TMI 41 - ITAT DELHI - TMI - Eligibility to registration u/s 12AA - effective date of registration - Held that:- According to the newly introduced provisions of section 12AA of the Act the person in receipt of the income should make an application in Form No. 10A for registration of the trust or institution to the Commissioner before the expiry of a period of one year from the date of the creation of the trust or the establishment of institution, whichever is later. However, where an ap .....

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12 will apply from 1st day of the financial year in which the application is made. In the instant appeal, it is undisputed that the assessee has been granted registration. However, the registration has been granted w.e.f. from the last day of the financial year 2002-03 whereas the scheme of the Act envisages that the registration should be granted from the first day of the financial year. We find the approach of the Ld. CIT contrary to the provisions of the Income Tax Act and therefore we direct .....

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ssessee against the order dated 29/09/2012 passed by the Ld. Commissioner of Income Tax-Ghaziabad granting registration u/s 12AA of the Income Tax Act, 1961 (hereinafter called the Act ). 2. The assessee is an authority constituted under the U.P. Urban Planning and Development Act, 1973. The assessee was initially denied registration u/s 12AA of the Act by the Ld. CIT vide order dated 08/08/2006 and the assessee preferred an appeal before the ITAT. ITAT vide its order dated 31/01/2007 in ITA No. .....

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ain approached the ITAT contesting the rejection of its rectification application. However, the ITAT dismissed the assessee s appeal vide order dated 16/12/2015 in ITA No. 4009/Del/2015 by holding that the assessee s appeal was not maintainable by making the following observations: 7. In view of above discussion, we are of the view that the appeal filed by the assessee against the order passed u/s 154 of the Act to the order u/s 12AA is not maintainable. However, the assessee may file an appeal .....

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facts in allowing the registration u/s 12AA from 31.03.2003 instead of 01.04.2002 which is mandate as per first proviso to section 12A(1) of the Income Tax Act, 1961. 2. That in any view of the matter and in any case, action of Ld. CIT in not allowing the registration u/s 12AA from 01.04.2002 is bad in law and against the facts and circumstances of the case and Ld. CIT has erred in disregarding the order of Hon ble Tribunal. 3. That the appellant craves the leave to add, modify, amend or delete .....

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u/s 154 was passed on 29/05/2015. Against the said rejection, the assessee had again filed an appeal before the ITAT within time. Thereafter, after the dismissal of the assessee s appeal by the ITAT on 16/12/2015, the assessee has immediately filed this appeal on 29/01/2016. Thus, the assessee had acted in a bona fide manner and had proceeded to seek redressal of its grievances in a bona fide manner and, therefore, the delay of 1875 days ought to be condoned. On merits, the Ld. AR drew our atten .....

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been made effective is correct. 5. We have heard the rival submissions and have perused the material on record. As far as the issue of condonation of delay is concerned, it is a settled law that the courts and the quasi-judicial bodies are empowered to condone the delay if the litigant satisfies the Court that there were sufficient reasons for availing the remedy after expiry of the limitation. Such reasoning should be to the satisfaction of the Court. The expression sufficient cause or reason a .....

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Hon ble Apex Court on various occasions. In the case of State of West Bengal vs. Administrator, Howrah Municipality AIR 1972 SC 749, the Hon ble Supreme Court, while considering the scope of expression sufficient cause for condonation of delay, has held that the said expression should receive a liberal construction so as to advance substantial justice when no negligence or inaction or want of bona fide is imputable to party. 5.1 In the case of N. Balakrishnan vs. M. Krishnamurthy AIR 1998 SC 322 .....

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rrant to castigate him as an irresponsible litigant. What he did in defending the suit was not very much far from what a litigant would broadly do. Of course, it may be said that he should have been more vigilant by visiting his advocate at short intervals to check up the progress of the litigation. But during these days when everybody is fully occupied with his own avocation of life, an omission to adopt such extra vigilance need not be used as ground to depict him as a litigant not aware of hi .....

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of a very long range can be condoned as the explanation thereof is satisfactory. Once the Court accepts the explanation as sufficient, it is the result of positive exercise of discretion and normally the superior Court should not disturb such finding, much less in revisional jurisdiction, unless the exercise of discretion was on wholly untenable grounds or arbitrary or perverse. But it is a different matter when the first Court refuses to condone the delay. In such cases, the superior Court woul .....

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e not meant to destroy the rights of the parties. They are meant to see that the parties do not resort to dilatory tactics but seek the remedy promptly. The Hon ble Apex Court further observed that refusal to condone the delay would result in foreclosing a suitor from putting forth his cause. There is no presumption that the delay in approaching the Court is always deliberate. The Hon ble Supreme Court in SLP[Civil No. 12980 of 1986, decided on 19th Feb., 1987, in the case of Collector, Land Acq .....

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ot mean that a pedantic approach should be made, why not every hour s delay, every second s delay. The doctrine must be applied on a rational commonsense pragmatic manner. 4. 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. 5. There is no presumption that delay is occasioned deliberately, or on a .....

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nd has not neglected the Income Tax proceedings. The Hon ble Apex Court in the case of N. Balakrishnan (supra) has observed that the length of delay is immaterial. The acceptability of the explanation is the only criteria for condoning the delay. In a given case, delay of the shortest period of time may be un-condonable due to unacceptable explanation, whereas in certain other cases, delay of a long period can be condoned if the explanation is satisfactory. In every case of delay, there might be .....

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re, on the facts of the present case, we are of the considered opinion that the assessee has been able to demonstrate sufficient reasons, in the shape of approaching wrong remedy, for filing an appeal before the Tribunal. Therefore, we deem it fit to condone the delay of 1875 days and admit the appeal. 5.4 As far as the merits of the appeal are concerned, it is seen that according to the newly introduced provisions of section 12AA of the Act the person in receipt of the income should make an app .....

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