ITAT Dismisses Awadh Public School's 9-Year Tax Appeal for 'Unjustified Delay' [Read Order]

The Income Tax Appellate Tribunal (ITAT), Lucknow Bench, has dismissed a tax appeal filed by Awadh Public School Academy, citing an "unjustified delay" of 3,299 days (approximately 9 years) in filing the appeal. The tribunal rejected the school's plea for condonation of delay, emphasizing the lack of reasonable cause for such an inordinate lapse.

The appellant, Awadh Public School Academy, had challenged an order dated June 26, 2003, passed by the Commissioner of Income Tax-II, Lucknow, which rejected its application for registration under Section 12AA of the Income Tax Act, 1961. The school sought to revive its appeal, which was earlier dismissed ex-parte by the tribunal in 2014. The case was later recalled in 2016, but the tribunal found no valid justification for the prolonged delay.

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During the hearing, the school's counsel argued that the delay occurred due to the negligence of its previous legal advisors, who failed to file the appeal despite being engaged for the purpose. The counsel relied on several case laws, including the Supreme Court's ruling in Improvement Trust, Ludhiana vs. Ujagar Singh & Others (2008), to support the argument that delay should be condoned if no prejudice is caused to the Revenue. However, the tribunal observed that the cited judgments were factually distinguishable and did not apply to the present case.

The Revenue, represented by Smt. Namita S. Pandey, CIT-DR, opposed the condonation plea, calling it a "classical case of negligence." She argued that the school, being a registered society, should have been aware of legal timelines and actively pursued its case. The tribunal agreed, noting that the appellant failed to provide any evidence of follow-up with its previous counsels or genuine reasons for the delay.

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After reviewing submissions, the bench comprising Kul Bharat (Vice President) and Anadee Nath Mishra (Accountant Member) held that the school's explanation was insufficient. The tribunal stressed that the law of limitation cannot be overlooked without strong justification, especially when the delay spans nearly a decade. The appeal was dismissed as time-barred, and the application for condonation was rejected.

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The order, pronounced  reinforces the principle that procedural discipline must be upheld, even in cases involving educational institutions. The tribunal's decision leaves the school's tax dispute unresolved, marking the end of a prolonged legal battle.

To Read the full text of the Order CLICK HERE

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