The Commissioner of Income Tax vs Mormugao Port Trust, Head Land Sada, Vasco-da-Gama-Goa

Heard the learned counsel appearing for the Appellant. The respondent/assessee is a Port Trust. It was constituted on 1st July, 1964 under the Major Port Trusts Act, 1963. Upto the assessment year 2002 -2003, the Port Trust being a local authority in view of clause 3(31) of the General Clauses Act, the income of the Port Trust was exempted u/s 10(20) of the Income Tax Act, 1961. Vide the Finance Act 2002, an explanation was inserted in section 10(20) restricting the benefit of exemption u/s 10(20) to certain specified local authorities and accordingly, the benefit of the exemption u/s 10(20) no more remained applicable to Port Trusts. On 30th January, 2006 an application was made by the respondent/assessee for registration u/s 12A of the said Act of 1961. The application was for claiming exemption. The said application was rejected by the CIT, Panaji. An appeal was preferred by the respondent before the Tribunal. In the said appeal, it was held that the respondent/assessee was entitled for registration u/s 12A w.e.f 1st April, 2005, which is the first date of the financial year in which the application for registration u/s 12A of the said Act of 1961 was filed. On the issue whether the claim for registration w.e.f 1st April, 2002 can be considered, there was an order of remand passed by the Tribunal to the CIT. While passing the order on remand, the Tribunal directed the CIT to consider the request of the respondent assessee for condonation of delay in preferring the application for registration u/s 12A of the said Act of 1961.

In support of the prayer in the application for condonation of delay, various grounds were set out by the respondent Port Trust. Reliance was placed on the decision of the Appellate Tribunal at Ahmedabad delivered on 4th April, 2005 holding that Port Trusts are entitled to registration u/s 12A. It is stated that only in the year 2005, the respondent/assessee become aware of the legal position on the basis of the said decision that a Port Trust is entitled to registration under seciton12A of the said Act of 1961. Apart from this, the Ministry of Shipping was pursuing the matter with the Finance Ministry for restoration of the pre-amended status of section 10(20) of the said Act of 1961. Only when it was realized that there was no response from the Finance Ministry, the application was filed on 30th January 2006. All this was part of the Affidavit filed by the respondent/assessee. The prayer for delay was rejected by the CIT against which an appeal was preferred by the respondent/assessee before the Appellate Tribunal. After considering the aforesaid facts, the Appellate Tribunal came to the conclusion that the delay has been satisfactorily explained. Moreover, the Appellate Tribunal noted that the Jawaharlal Nehru Port Trust filed an application u/s 12A in February 2006 giving the same reasons for delay which were set out by the respondent. It is pointed out in the impugned order that the Appellate Tribunal at Bombay condoned the delay by recording detailed reasons. The effect of the impugned order is that for the reasons recorded by the Tribunal, the delay for filing application for registration u/s 12A of the said Act of 1961 made by the respondent Port Trust has been condoned. We find no error in the finding of fact recorded by the Tribunal. No substantial question of law arises in this appeal. Therefore, the appeal is accordingly dismissed.