2016 (3) TMI 1195 - AT - Income Tax

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 ... Condonation of delay - Non-granting of registration u/s.12AA - Held that:- There is no condonation petition filed by the assessee to condone the delay. However, there was a petition filed by the ld.A.R dated 7th March, 2016 seeking condonation of delay in filing the appeal stating that order of CIT u/s.12AA was received and handed over to the assessee’s counsel Mr.A.Johnson,FCA for further action, and the assessee solely relied on the professional assistance from Chartered Accountant, who had failed to take necessary action in filing the appeal before this Tribunal. Even there is no confirmation from the Chartered Accountant owing the responsibility. In such circumstances, there is no good and sufficient reason to condone the delay. Inordinate delay of 163 days solely attributable to negligence and inaction on the part of the assessee, which could have been avoided by exercise of due care and attention, did not constitute good reason for condonation of delay. Accordingly, by placing reliance on the judgement of Supreme Court in the case of Vedabai Alias Vaijayanatabai Baburao Patil v. Shantaram Baburao Patil And Others reported in [2001 (7) TMI 117 - SUPREME Court] we are declined to admit the appeal. Accordingly, the appeal is dismissed as unadmitted. Issues: Delay in filing appeal for registration u/s.12AA of the Income Tax ActThe 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.