RAJASTHAN TECHNICAL UNIVERSITY,KOTA vs. COMMISSIONER OF INCOME TAX, EXEMPTIONS, JAIPUR

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Jh jes’k lh0 ’kekZ] ys[kk lnL; ,oa Jh fot; iky jko] U;kf;d lnL; ds le{k BEFORE: SHRI RAMESH C. SHARMA, AM & SHRI VIJAY PAL RAO, JM vk;dj vihy la-@ITA No. 541/JP/2019 fu/kZkj.k o"kZ@Assessment Year : 2017-18 cuke Rajasthan Technical University The CIT, Vs. Rawatbhata Road, Akelgarh, Exemption, Kota-324010. Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAALR 0232 K vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Miss. Dakshayani Pandey (Adv.)& Shri Rajiv Pandey (C.A.) jktLo dh vksj ls@ Revenue by : Shri Amrish Bedi (CIT) lquokbZ dh rkjh[k@ Date of Hearing : 06/08/2020 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 11/08/2020 vkns'k@ ORDER

PER: VIJAY PAL RAO, J.M. This appeal by the assessee is directed against the order dated 06.11.2017 of ld. CIT(E), Jaipur passed U/s 12AA(1)(b) of the Income Tax Act whereby the ld. CIT(E) granted registration U/s 12A w.e.f. 01.04.2017 as against the registration sought by the assessee with retrospective effect from 31.12.2005. Due to prevailing COVID-19 pandemic condition the hearing of the appeal is concluded through video conference.

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

assessee has filed an application for condonation of delay. The ld. AR of

the assessee has submitted that the assessee-university has been

established under Rajasthan Technical University Act, 2006 by the

Government of Rajasthan however, the assessee-university was

incorporated w.e.f. 31.12.2005. She has further submitted that the

assessee was illegible for exemption U/s 10(23C)(iiiab) of the Income

Tax Act. But after notification by CBDT with reference to rule 2BBB

dated 12.12.2014 and with reference to decision of Hon’ble Supreme

Court in case of Visvesvaraya Technological University vs. ACIT

384 ITR 37 it was advised that for abundant caution, the University

should apply for registration U/s 12AA of the IT Act with effect from its

date of incorporation i.e. 31.12.2005. Accordingly, the assessee

submitted an application in form 10A for registration U/s 12A on

26.05.2017 and sought registration with retrospective from 31.12.2005. The ld. CIT(E) has granted registration w.e.f. 01.04.2017 i.e. 1st day of

the financial year in which the application was submitted. The ld. AR

has submitted that the assessee is having a good case on merits as the

assessee was earlier eligible for exemption U/s 10(23C)(iiiab) of the

Income Tax Act and only because of amendment in law and the

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

judgment of the Hon’ble Supreme Court, the assessee has applied for

registration U/s 12AA of the Act. The delay in filing the appeal is on

account of non realization of impact for the period for which the

registration was not granted. The assessee, therefore, seeking

registration U/s 12A of the Act w.e.f. 31.12.2005 since its inception

hence, this application for condonation of delay is filed. The reason for

delay are bonafide accordingly, the ld. AR is pleaded that the delay in

filing the appeal may be condoned and the appeal of the assessee may

be decided on merits.

condonation of delay and submitted that after the registration granted

by the ld. CIT(E) there is no grievance of the assessee and the present

appeal filed by the assessee is nothing but luxury litigation. Even the

assessee has not explained any reasonable cause for filing the appeal

belatedly.

material on record. The assessee has explained the cause of delay as

failure to realize the impact of the registration granted by the ld. CIT(E)

prospectively instead of retrospective effect from 31.12.2005. The

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

relevant part of the realization in the application for the delay as

under:-

“The delay in filing this appeal is for 1 year and 4 months is on account of non-realization of the impact of the period for which exemption u/s 12A has been given. The university seeks exemption u/s 12A w.e.f. 31.12.2005 i.e. its inception and hence this application for condonation of delay which is bonafide and may please be granted as the University is an educational institution founded the State Legislature and existing solely for education and not for purposes of profit. The application of delay in filing appeal deserves to be condoned and it is humbly prayed the same may please be condoned.”

Except the vague explanation of non realization the assessee has not

explained any cause of delay which has prevented the assessee for

filing the present appeal within the period of limitation. The assessee is

not an illiterate ordinary person but the assessee is a university which is

managed by well educated high ranking official. The assessee is also

taking the services of the tax experts. Even in support of the application

for condonation of delay no affidavit is filed on behalf of the assessee.

There is no dispute that while condoning the delay the court should

take a lenient view in construing the sufficient cause and should been

in favour of the such party so that the cause of substantial justice has

to be preferred as against technical consideration. However, it is always

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

a question whether the explanation and reason for delay are bonafide

or is merely a device cover an ulterior purpose on the part of the litigant

or attempt to saw limitation in an under hand way. From the facts and

circumstances of the present case it is clear that the assessee applied

for registration U/s 12AA of the Act on 26.05.2017 and the ld. CIT(E)

while passing the impugned order dated 06.11.2017 granted

registration w.e.f. 01.04.2017 as it is provided so U/s 12A/12AA of the

Act. The power of the ld. CIT(E) U/s 12A/12AA of the Act is normally restricted to grant registration from 1st day of the financial year in which

the application is made except in a case where he is satisfied for the

reasons to be recorded in writing that the institution/person in receipt

of the income was prevented from making the application before the

expiry of one year from the date of creation of the trust or institution as

the case may be. In the case in hand the assessee before the ld. CIT(E)

has explained in filing of the application for registration in the year 2017

because of amendment in the provisions as well as judgment of Hon’ble

Supreme Court and till that date the assessee-university claimed to be

eligible for exemption U/s 10(23C)(iiiab) of the Act. Therefore, the

assessee has not explained any reason or cause which has prevented

the assessee for not filing the application for registration within the

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

prescribed period being one year from the date of creation. Hence,

prima facie the order passed by the Commissioner(exemption) is in

accordance with the provisions of Section 12A/12AA of the Act and the

assessee was having no grievance. Thereafter the assessee has all of

sudden decided to file present appeal belatedly. The assessee has not

explained as to what circumstance has led to the assessee to took such

a long time of more than one and half year to file the appeal. Even the

reasons explained by the assessee are very vague and exhibit

negligence on the part of the assessee. We do agree with the

contention of the ld. DR that this is a luxury litigation and the assessee

was not serious about the filing of the appeal. The assessee has not

explained from where the assessee has sought advice or what process

was undertaken to reach the conclusion that it has to challenge the

impugned order. It is settled proposition of law that in the absence of

reasonable or sufficient cause the delay cannot be condoned merely an

equitable ground. This is an inordinate delay and the assessee has

patently failed to explain the reasonable cause for delay but has taken

an excuse of none realization of the impact of the impugned order. It is

not the sole litigation with the tax authority but the assessee is

continuously involved in the litigation as challenged the notice issued by

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E)

the AO U/s 148 of the Act before the Hon’ble High Court and therefore,

the assessee cannot take such excuse of non realizing the impact of the

impugned order for such a long time of one and half year. The

negligence on the part of the assessee for not taking necessary steps

for filing the appeal within the limitation period provided by statute

cannot be considered as a reasonable or sufficient cause. Even the

assessee is very casual in explaining the reasons in the application of

condonation of delay which is not supported by a affidavit. The cause

explained by the assessee is much less then the sufficient cause as to

why the appeal was not filed within the limitation or immediately after

expiry of limitation period. In the absence of any detail as to what steps

the assessee took to reach to the decision of challenging the impugned

order and filing the present appeal and why the assessee has not filed

the present appeal as soon as possible even after expiry of the

limitation period. Therefore, the explanation for delay of 442 days in our

view is insufficient, unsatisfactory and unreasonable. Therefore, the

vague explanation without any particulars or details cannot be accepted

as a reasonable cause. Accordingly, the application for condonation of

delay is dismissed and consequently the appeal of the assessee is not

maintainable being barred by limitation. Since the appeal of the

ITA No. 541/JP/2019 Rajasthan Technical University vs. CIT(E) assessee is found to be barred by limitation, therefore, we do not propose to go to the merits of the appeal. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 11/08/2020. Sd/- Sd/- ¼ jes’k lh0 “kekZ ½ ¼fot; iky jko½ (Ramesh. C. Sharma) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 11/08/2020. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- Rajasthan Technical University, Kota. 2. izR;FkhZ@ The Respondent- CIT, Exemption, Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 541/JP/2019} vkns'kkuqlkj@ By order,

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