Case Law Details
Saraswati Trust Vs CIT-Exemption (ITAT Ahmedabad)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Ahmedabad condoned the late filing of an appeal by Saraswati Trust against the Commissioner of Income Tax (Exemption). This has significant implications for legal practitioners and taxpayers. The delay was attributed to a mistake by the Trust’s consultant, and the case was remanded for fresh consideration under Section 12A of the Income Tax Act.
Saraswati Trust had raised several legal issues in its appeal, primarily focusing on the violation of the principle of natural justice and improper appreciation of facts and law by the CIT (Exemption). The appeal was initially time-barred by 671 days but later reduced to 226 days, accounting for the Covid pandemic.
The ITAT applied various case laws to justify the condonation of delay in filing the appeal. Notably, the Supreme Court’s ruling in Collector, Land Acquisition v. Mst. Katiji set a precedent for a liberal approach to delays, emphasizing that “substantial justice” should be the primary focus.
Similarly, N. Balakrishnan v. M. Krishnamurthy supported the condonation, stating that the purpose of law is not to destroy rights but to repair legal injuries.
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