TMI Blog2002 (7) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... its application the assessee had filed the registration certificate with the Charity Commissioner, audit report of annual accounts for the year ended on 31-3-1998, 31-3-1999 and 31-3-2000. The accounts were finalized upto 31-3-2000. The audit report was obtained on 10-7-2000. Since the assessee was aware that its application for registration is not within time, he filed an application on 30th September, 2000, wherein the assessee prayed for condonation of delay for not making an application under section 12A(a) in time. 3. However, the ld. Commissioner has granted registration to the assessee with effect from 1-4-2000. He has rejected the application of the assessee for granting registration to the Trust with effect from 31st January, 1997 to 31st March, 2000. 4. Against this order of the Commissioner of Income, Rajkot dated 16th May, 2001 the assessee has filed four appeals pertaining to assessment years 1997-98, 2000-2001, the Registry of the Tribunal had pointed out to the assessee that the appeals are time-barred by 79 and 117 days. The appeal for assessment year 1997-98 is time-barred by 79 days and the rest of the appeals are time-barred by 117 days. 5. In response t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere not aware that this trust is required to be registered under Income-tax Act also. (c)The trust has not carried out any activity except receipt of donation of agriculture land and opening of Savings Bank A/c. (d)The trust has got its accounts audited on 10-7-2000 for the financial years 1996-97, 1997-98, 1998-99 and 1999-2000 together. The learned counsel for the assessee with his usual eloquence submitted that the learned Commissioner has passed the order in a cryptic manner. He nowhere considered the explanation of the assessee in his order. The order is in a cyclostyled proforma. In all the orders the ld. Assessing Officer has pointed out that there is a delay of 3 years 5 months and 13 days in filing the application. However, the same cannot be so, so far as the application relating to assessment year 1999-2000. He further submitted that the ld. Commissioner has not granted any opportunity of hearing before rejecting the application of the assessee. 6. While controverting the contention of the learned counsel for the assessee, the learned Departmental Representative submitted that the explanation of the assessee for condonation of delay in filing the appeal is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Supreme Court on various occasions. In the case of State of West Bengal v. The Administrator Hawrah Municipality reported in AIR 1972 page 749 (SC) 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 the substantial justice when no negligence or inaction or want of bona fide is imputable to party. 10. In the case of N. Balakrishnan v. M. Krishnamurthy AIR 1998 page 3222, there was a delay of 883 days in filing an application for setting aside the ex parte decree for which application for condonation of delay was filed. The Trial Court having found that sufficient cause was made out for condonation of delay condoned the delay. However, the Hon ble High Court reversed the order of the Trial Court. The Hon ble Supreme Court while restoring the order of the Trial Court has observed in Paras 8, 9 and 10 as under :- 8. The appellant s conduct does not on the whole warrant 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (5) of section 253 as well as in proviso (a) to section 12A of the Act should receive a liberal construction so as to advance substantial justice. Adverting to the facts of the present case, it is noticed that all the trustees are uneducated, rustic, rural people. Their social as well as educational background do not bring them within the ambit that they are well aware with regard to legal complexity of the Income-tax Act as well as the consequences of the order passed by the Commissioner. We are satisfied that there are sufficient reasons for the assessee for late filing this appeal as well as submitting the application in Form No. 10A for registration. The ld. Counsel has demonstrated before us that the Trust is a charitable trust. It has not carried out any activity except receipt of donation of agricultural land opening of a Saving Bank account. None of the trustee has a background of running any such trust. The Trust will not gain any thing by late filing the appeal as well as the registration application. There is no mala fide imputable to the assessee. The delay in our considered opinion in filing the appeals as well as the application is a result of lack of knowledge, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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