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Income Tax Appellate Tribunal, ‘B’ BENCH, KOLKATA
Per Rajpal Yadav, Vice-President (KZ):- Both the appeals bearing ITA Nos. 393 & 394/KOL/2024 are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Exemption), Kolkata dated 25th August, 2023 and 28th August, 2023 respectively.
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha 2. The Registry has pointed out that the appeal bearing ITA No. 393/KOL/2024 is time barred by 126 days and the appeal bearing ITA No. 394/KOL/2024 is time barred by 123 days. The assessee has filed applications for condonation of delay along with affidavit of Shri Biswarup Debburman, Vice-President of the assessee- Society. It is deposed in the affidavit that there was some communication gap between the Society vis-à-vis Tax Consultant. Due to that, these appeals could not be filed well in time.
We have duly considered the rival contentions and gone through the record carefully. Sub-section 5 of Section 253 contemplates that the Tribunal may admit an appeal or permit filing of memorandum of cross- objections after expiry of relevant period, if it is satisfied that there was a sufficient cause for not presenting it within that period. This expression sufficient cause employed in the section has also been used identically in sub-section 3 of section 249 of Income Tax Act, which provides powers to the ld. Commissioner to condone the delay in filing the appeal before the Commissioner. Similarly, it has been used in section 5 of Indian Limitation Act, 1963. Whenever interpretation and construction of this expression has fallen for consideration before Honble High Court as well as before the Honble Supreme Court, then, Honble Court were unanimous in their conclusion that this expression is to be used liberally. We may make reference to the following observations of the Hon’ble Supreme court
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha from the decision in the case of Collector Land Acquisition Vs. Mst. Katiji & Others, 1987 AIR 1353: 1. Ordinarily a litigant does not stand to benefit by lodging an appeal late.
Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties.
"Every day’s delay must be explained" does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay? The doctrine must be applied in a rational common sense pragmatic manner. 4. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay.
There is no presumption that delay is occasioned deliberately, or on account of 3
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious risk. 6. It must be grasped that judiciary is respected not on account of its power to legalize injustice on technical grounds but because it is capable of removing injustice and is expected to do so.
Similarly, we would like to make reference to authoritative pronouncement of Honble Supreme Court in the case of N. Balakrisknan Vs. M. Krishnamurtky (supra). It reads as under: “Rule of limitation are not meant to destroy the right 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. Law of limitation fixes a life-span for such legal remedy for the redress of the legal injury so suffered. Time is precious and the wasted time would never revisit. During efflux of time newer causes would sprout up necessitating newer persons to seek legal remedy by approaching the courts. So a life span must be fixed for each remedy. Unending period for launching the remedy may lead to unending uncertainty and consequential anarchy. Law of limitation is thus founded on public policy. It is enshrined in the maxim Interest reipublicae up sit finis litium (it is for the general welfare that a period be putt to litigation). Rules of limitation are not meant to destroy the right of the parties. They are meant to see that parties do not resort to dilatory tactics but seek their remedy promptly. The idea is that every legal remedy must be kept alive for a legislatively fixed period of time. A court knows that refusal to condone delay would result foreclosing a suitor from putting forth his cause. There is no presumption that delay in approaching the court is always deliberate.
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha This Court has held that the words "sufficient cause" under Section 5 of the Limitation Act should receive a liberal construction so as to advance substantial justice vide Shakuntala Devi lain Vs. Kuntal Kumari [AIR 1969 SC 575] and State of West Bengal Vs. The Administrator, Howrah Municipality [AIR 1972 SC 749]. It must be remembered that in every case of delay there can be some lapse on the part of the litigant concerned. That alone is not enough to turn down his plea and to shut the door against him. If the explanation does not smack of mala fides or it is not put forth as part of a dilatory strategy the court must show utmost consideration to the suitor. But when there is reasonable ground to think that the delay was occasioned by the party deliberately to gain time then the court should lean against acceptance of the explanation. While condoning delay the Could should not forget the opposite party altogether. It must be borne in mind that he is a looser and he too would have incurred quiet a 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”. 5. We do not deem it necessary to re-cite or recapitulate the proposition laid down in other decisions. It is suffice to say that the Honble Courts are unanimous in their approach to propound that whenever the reasons assigned by an applicant for explaining the condonation of delay, then such reasons are to be construed with a justice oriented approach. 6. In the light of above, let us examine the facts of the present case. A perusal of the record would indicate that the assessee-Trust came into existence on 24.01.1956. It was granted registration under section 12A on 15.11.2000. Thus, it is an old Trust after the change in the scheme of assessment of Charitable Institution effected by way of Finance Act, 2020-21 w.e.f. 1st April, 2020. The assessee has applied for grant of registration
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha u/s. 12A(1)(ac)(iii) and approval u/s. 80G(5)(iii) afresh. A perusal of the impugned orders would reveal that these applications of the assessee have been dismissed for want of prosecution. This dismissal of the applications for want of prosecution is being considered one of the reasons for condoning the delay in filing the appeals. We have gone through the impugned orders, which are very brief. We find that the ld. CIT sent notices to the assessee for submitting supporting evidence but the notices remained uncompiled with and accordingly ld. CIT (Exemption) has rejected the applications of the assessee.
On due consideration of the impugned orders, we are of the view that ends of justice would meet if we give one more opportunity to the assessee. We set aside the impugned orders and restore the applications of the assessee for grant of registration under section 12A(1)(ac)(iii) and approval u/s 80G(5)(iii) of the Income Tax Act. The ld. CIT(Exemption) is directed to decide them on merit and not on account of any technical reasons.
In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 04/07/2024. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 4th day of July, 2024
ITA Nos. 393 & 394/KOL/2024 Kalyan Brata Sangha
Copies to :(1) Kalyan Brata Sangha, Brindabanpur, Police Station Uluberia, Howrah-711316, West Bengal (2) Commissioner of Income Tax(Exemption), Kolkata, 10B, Middleton Row (6th Floor), Kolkata-700071 (3) CIT- , Kolkata (4) The Departmental Representative; (5) Guard File TRUE COPY By order
Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.