Delay defeats Exemption

The Karnataka High Court dismissed the assessee's appeal challenging denial of exemption under Section 10(38) of the Income-tax Act and refusal to condone delay in filing an appeal against an intimation under Section 143(1). 

The Court held that the assessee had knowledge of the tax demand much earlier than claimed and had failed to satisfactorily explain the prolonged delay in pursuing appellate remedies. Since the refusal to condone delay was justified, the claim for exemption could not be examined on merits.