2018 (4) TMI 1134

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....me-tax Act, 1961 and Section 11 of the Income-tax Act, 1961. All along, exemption was given to the Society, but, suddenly, by a letter dated 07.11.2011, a demand was made by the respondent demanding a sum of Rs. 83,74,558/-. Since there was litigation over the management of the Society, no appeal was preferred by the petitioner for the demand made by the respondent. 2. From the year of 2011, the Special Officer appointed by the High Court is managing the affairs of the College. Therefore, the society could not approach the respondent in time. Since no appeal was filed the respondent issued a Garnishee order. The writ petitioner prefers this petition for quashing the notice issued by the respondent under Section 226(3) of the Income-tax A....

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....the statement, it is seen that more than 4,000 students are studying in the College. The College is financially crippled due to the attachment and recovery made by the respondent. Ultimately, the beneficiaries, the students and staff of the Educational Institution alone will be affected. The Special Officer is appointed only to manage the College and not to monitor the affairs of the Society. 7. In such circumstances, somebody should take up the interests of the Society and consequentially the interest of students and the staff of the College. The Society shall be permitted to agitate the matter on merits for the cause of doing substantial justice, rather than knocking it off on technicalities of delay. The Honourable Supreme Court in th....

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.... is not because on the expiry of such time a bad cause would transform into a good cause. 11. Rules of limitation are not meant to destroy the rights of parties. They are meant to see that parties do not resort to dilatory tactics, but seek their remedy promptly. The object of providing a legal remedy is to repair the damage caused by reason of legal injury. The law of limitation fixes a lifespan for such legal remedy for the redress of the legal injury so suffered. Time is precious and wasted time would never revisit. During the efflux of time, newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a lifespan must be fixed for each remedy. Unending period for launching the remed....

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.... lean against acceptance of the explanation. While condoning the delay, the Court should not forget the opposite party altogether. It must be borne in mind that he is a loser and he too would have incurred quite large litigation expenses. It would be a salutary guideline that when courts condone the delay due to laches on the part of the applicant, the court shall compensate the opposite party for his loss." 8. In the instant case, as stated supra, considering the interest of the students community as well as hundreds of employees working in the College and the Society, this Court is of the view that this is a fit case for issuing certain directions. Because of the rivalry between the members of the Management the real beneficiaries shal....