M/S. FATHIMA EDUCATIONAL AND CHARITABLE TRUST V. THE COMMISSIONER OF INCOME TAX

WP(C)/31709/2016

AI Insights

The case involves M/s. Fathima Educational and Charitable Trust, which sought to challenge the decision of the Income Tax Appellate Tribunal, Cochin Bench, regarding the non-condonation of a 1964-day delay in filing an appeal against the rejection of their application for registration as a charitable institution under Section 12AA of the Income Tax Act, 1961. The Tribunal had previously dismissed the petitioner's applications, and the petitioner, represented by various advocates, approached the High Court of Kerala after a significant delay. The main legal contention was the Tribunal's refusal to condone the delay, which the petitioner attributed to a lack of understanding of the relevant procedures and provisions.

• Counselvise Citation: [2017] 140 COUNSELVISE.COM (IT) 755465 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-01-2017
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; K M V PANDALAI
• Assessee Lawyers: T M SREEDHARAN; V P NARAYANAN; VANDANA MENON; DIVYA RAVINDRAN; ABRAHAM THARAKAN
• Keywords: Charitable institution; Delay condonation; Ignorance of law; Income tax appellate tribunal
• Section: 12AA

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN THURSDAY, THE 12TH DAY OF JANUARY 2017/22ND POUSHA, 1938 WP(C).No. 31709 of 2016 (K) ---------------------------- PETITIONER: ----------- M/S. FATHIMA EDUCATIONAL AND CHARITABLE TRUST, KUMPANVILA VEEDU, CHENKAL VILLAGE, ARAYOOR POST, AMARAVILA, NEYYATTINKARA TALUK, TRIVANDRUM-695122, REPRESENTED BY ITS TRUSTEE, SHRI J.VARGHESE. BY ADVS.SRI.T.M.SREEDHARAN (SR.) SRI.V.P.NARAYANAN SMT.VANDANA MENON SMT.DIVYA RAVINDRAN SRI.ABRAHAM VARGHESE THARAKAN RESPONDENT(S): -------------- 1. THE COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, KAWDIAR P.O., THIRUVANANTHAPURAM-695003. 2. INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, 1ST FLOOR, (BLOCK C-I & C-II), KENDRIYA BHAVAN, OPP. CSEZ, KAKKANAD, COCHIN-682037, REPRESENTED BY ASSISTANT REGISTRAR. 3. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), AAYAKAR BHAVAN, KAWDIAR, THIRUVANANTHAPURAM-695003. BY ADV. SRI.CHRISTOPHER ABRAHAM, BY ADV. SRI.K.M.V.PANDALAI, THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12-01-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.V. WP(C).No. 31709 of 2016 (K) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ----------------------- EXHIBIT P1 TRUE COPY OF THE ORDER U/S. 12AA OF THE IT ACT, DATED 3-3-2009 PASSED BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE LETTER DATED 28-10-2008 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P3 TRUE COPY OF THE LETTER DATED 22-11-2008 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P4 TRUE COPY OF THE ORDER C.NO.301/50/2009-10 DATED 30-9-2010 PASSED BY THE 1ST RESPONDENT. EXHIBIT P5 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 4-2-2016 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P6 TRUE COPY OF THE AFFIDAVIT FOR CONDONATION OF DELAY SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P7 TRUE COPY OF ORDER DATED 25-7-2016 IN ITA NO.84/COCHIN/2016 OF THE APPELLATE TRIBUNAL (2ND RESPONDENT). RESPONDENT(S)' EXHIBITS NIL ----------------------- /TRUE COPY/ P.A.TO JUDGE K.V. K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) No. 31709 of 2016 J - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 12th day of January, 2017 J U D G M E N T The petitioner is aggrieved with the order at Ext.P7 of the Income Tax Appellate Tribunal, Cochin Bench, Cochin. The short facts to be noticed are that the petitioner filed an application under Section 12AA of the Income Tax Act, 1961 claiming registration as a charitable institution. The same was once dismissed by Ext.P1 dated 03.03.2009. A subsequent application was made which was also rejected as per Ext.P4 dated 30.09.2010. A 3rd application is also said to have been made, which is said to be pending. 2. While so, the petitioner approached the Tribunal with a delay of 1964 days. The Tribunal by a detailed order refused to condone the delay. The only ground raised in the affidavit accompanying delay condonation application was the WPC.No.31709/2016 : 2 : lack of understanding of the assessee with respect to the relevant procedure and the provisions of the Act. It is trite that ignorance of law is not an excuse and lack of understanding would also be akin to ignorance; which cannot validly be taken up. The delay is also huge coming to 1964 days. This Court does not find any reason for condoning the delay and is unable to persuade itself to interfere with the order of the Tribunal The writ petition would stand dismissed leaving open the remedy of the petitioner to agitate the third application filed before the appropriate authority, which shall be applicable only to the future years, if at all. Sd/- (K. VINOD CHANDRAN, JUDGE) jma //true copy// P.A to Judge "