Awadh Public School Academy Vs ITO (ITAT Lucknow)
Income Tax Appellate Tribunal (ITAT), Lucknow bench, has dismissed an appeal filed by Awadh Public School Academy, citing an “inordinate delay” of 3,299 days, equivalent to over nine years, in its submission. The appeal, pertaining to the assessment year 2002-03, challenged an order by the Commissioner of Income-tax-II, Lucknow, dated June 26, 2003, which had dismissed the school’s application for registration under Section 12AA of the Income-Tax Act, 1961.
The registry reported the significant delay, and the appeal had previously been dismissed ex parte on June 13, 2014, only to be recalled by the Tribunal through a Miscellaneous Application on June 8, 2016. Despite the recall, the issue of condonation of delay remained central to the present hearing.
The counsel for the assessee argued that there was “reasonable cause” for the delay, attributing it to the previous legal representatives, Shri Piyush Mishra, FCA, and Shri K. K. Dubey, Advocate, who were engaged to file the appeal but allegedly failed to do so and did not inform the assessee. The counsel also contended that no prejudice was caused to the Revenue by the delay, asserting that any delay, irrespective of its length, should be condoned if no harm is inflicted upon the tax authorities. In support of this contention, the assessee’s counsel cited several judicial precedents, including:
- Improvement Trust, Ludhiana vs Ujagar Singh & Others (Civil Appeal Nos 2395 of 2008, Supreme Court of India)
- Remex Construction/Remex Electricals vs First Income Tax Officer & Others (W.P. No.1351 of 1982, Order dated 09.03.1986 High Court of Bombay)
- Sterlite Industries (India) Ltd Vs. Add. CIT (Order dated 20.12.2005 ITAT Mumbai. Equivalent citation (2006) 102 TTJ 53, Mum)
- All India Primary Teachers vs Director of Income Tax (Order dt. 04.06.2004, 2005 ITAT Delhi. Equivalent citations: (2005) 93 TTJ 155)
- Arun Ganguli vs Amaresh Ganguli (R.S.A. No.222/2015, Order Dt 15.10.2015 Delhi High Court)
- The Rohtak Coop Milk Producer vs Assessee (ITA No.1181(Del.)/2010 A.Y. 2004-05 Order dated 13.03.2012 ITAT Delhi)
- Shri Lad Shakhiya Wani Samaj Kalyan & Shikshan Prasarak Mandal vs CIT(E) (ITA. No.572/PUN/2020 order dated 05.01.2021)
- Senior Bhosale Estate (HUF) vs ACIT (Civil Appeal Nos 6677-6690 of 2010, order dated 07.11.2019, Supreme Court)
These precedents generally argue for a liberal approach to condoning delay, particularly when genuine hardship or procedural oversight by legal counsel is demonstrated, and no adverse impact on the opposing party is evident.
