Appeal dismissed for late registration under Income Tax Act. Negligence cited.

The ITAT Chennai dismissed the Assessee's appeal due to a 163-day delay in filing for registration under section 12AA of the Income Tax Act. The Tribunal held that the delay was solely due to the Assessee's negligence and lack of due care, which did not warrant condonation. Citing a Supreme Court precedent, the Tribunal emphasized the importance of diligence in legal matters, leading to the dismissal of the appeal.

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Issues: Delay in filing appeal for registration u/s.12AA of the Income Tax Act

The judgment pertains to an appeal filed by the Assessee against the order of the Commissioner of Income Tax-I, Madurai, dated 27.05.2011. The primary grievance of the assessee trust was the non-granting of registration u/s.12AA of the Income Tax Act. The appeal was filed with a delay of 163 days, and no condonation petition was submitted by the assessee. The Assessee's counsel sought condonation of delay, attributing the delay to the negligence and inaction of the Chartered Accountant responsible for filing the appeal. The Tribunal, citing the Supreme Court judgment in Vedabai Alias Vaijayanatabai Baburao Patil v. Shantaram Baburao Patil And Others (2002) 253 ITR 798 (SC), held that the delay was solely due to the assessee's negligence and lack of due care, which did not constitute a valid reason for condonation. Therefore, the appeal was dismissed as unadmitted due to the inordinate delay of 163 days.

In conclusion, the Appellate Tribunal, ITAT Chennai, dismissed the appeal of the assessee due to the delay in filing the appeal for registration u/s.12AA of the Income Tax Act. The Tribunal emphasized that negligence and inaction on the part of the assessee, without a valid reason, did not warrant the condonation of the delay. The decision was based on the principle established in the Supreme Court judgment, highlighting the importance of exercising due care and attention in legal matters.

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