Shimoga Urban Development Authority Vs ITO (ITAT Bangalore)
Delay Is Deadly: No Sympathy for Government Delay:- Bangalore ITAT Refuses to Condone Lapse by Urban Development Authority-
Limitation Law Applies Equally to State Bodies: Approval Delays Not a “Sufficient Cause”: ITAT Bangalore Takes Strict View
Bangalore ITAT “B” Bench, in Shimoga Urban Development Authority Vs ITO (ITA No. 57/Bang/2024, AY 2019-20; order dated 31.01.2025), dismissed the appeal of Assessee-authority as not maintainable on account of uncondoned delay of 74 days in filing the appeal before Tribunal.
Assessee, a statutory Urban Development Authority, had filed a belated return claiming exemption u/s 11 & 12, which was denied by CPC for non-filing of Form 10. CIT(A) confirmed denial by relying on ACIT Vs Ahmedabad Urban Development Authority (SC), holding that exemption u/s 11(2) is unavailable where return & Form 10 are not filed within due date as mandated by section 13(9).
Before ITAT, Assessee sought condonation of delay, citing procedural approvals from Chairman & internal government processes. Tribunal rejected the explanation, holding that administrative approvals, internal procedures & workload of officials do not constitute “sufficient cause”.
Placing reliance on Office of the Chief Post Master General Vs Living Media Ltd (SC) & the recent decision in Pathapati Subba Reddy Vs Special Deputy Collector (SC), Tribunal reiterated that law of limitation is founded on public policy & courts must exercise discretion strictly, especially where there is negligence, lack of due diligence or inordinate delay. Tribunal observed that even Government bodies are not entitled to special treatment & the affidavit itself demonstrated negligence by officials.
Accordingly, delay was not condoned & appeal was dismissed in limine, without going into merits of exemption u/s 11.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
Present appeal of the assessee is arising from the order of ld. CIT(A) dated 28.8.2023 and relates to assessment year 2019-20 having DIN & Order No.ITBA/NFAC/S/250/2023-24/1055526353(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”).
