MAHARISHI DAYANAND EDUCATIONAL SOCIETY,JIND vs. ITO (E), ROHTAK

In this case assessee filed return of income at NIL income. The A.O. noted that assessee is running an 2 ITA.No.3909/Del./2019 M/s. Maharishi Dayanand Educational Society, Village Dablan, Jind. educational institution and claimed exemption under section 10(23C)(iiiad) of the I.T. Act, 1961. The A.O. noted that assessee has shown gross receipts at Rs.1,03,19,223/- and after debiting various expenses at Rs.89,58,819/-, the net surplus has been shown at Rs.13,60,413/- which was claimed exempt. A.O. noted that assessee’s gross receipts are more than Rs.1 crore and has not registered under section 10(23C)(vi) and is also not registered under section 12AA of the I.T. Act, 1961. Thus, the A.O. made addition of Rs.13,60,413/-. The Ld. CIT(A) in the absence of the assessee dismissed the appeal of the assessee.

Learned Counsel for the Assessee at the outset submitted that assessee has not received any notice from Ld. CIT(A), therefore, order is passed without giving reasonable, sufficient opportunity of being heard to the assessee. He has also submitted that in penalty proceedings, the Ld. CIT(A) found the receipts of the assessee less than the prescribed limit.

The Ld. D.R. on the other hand relied upon the Orders of the authorities below.

After considering the submissions of both the parties and facts above, we are of the view that the matter requires reconsideration at the level of the Ld. CIT(A). The Ld. CIT(A) in the impugned order did not mention if any notice have been served upon the assessee for hearing of the appeal. It shows that appellate order have been passed without giving reasonable, sufficient opportunity of being heard to the assessee. Further the contention of the Learned Counsel for the Assessee that in penalty proceedings receipts were shown lesser than the prescribed limit which requires adjudication on facts on merits. In this view of the matter, we set aside the Order of the Ld. CIT(A) and restore the appeal of assessee to the file of Ld. CIT(A), Hisar, with a direction to re-decide the appeal of assessee in accordance with law, by giving reasonable, sufficient opportunity of being heard to the assessee.

In the result, appeal of the Assessee allowed for statistical purposes.