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Income Tax Appellate Tribunal, DELHI BENCH “D+SMC”: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI L.P. SAHU
O R D E R PER AMIT SHUKLA, J.M. The aforesaid appeal has been filed by the assessee against order dated 9.2.2018 passed by Ld. CIT (Appeals) Meerut for the quantum of assessment passed u/s 147/144 for the assessment year 2010-11. In the grounds of appeal, the assessee has raised following grounds:- 1 “That, learned CIT (A) grossly erred in dismissing additional evidences without any opportunity on this issue, only and only because new AR failed to file application under rule 46A while assessee had fully demonstrated the sufficient cause in terms of rule 46A(b)/(c) and no specific application is prescribed under the law for this purpose. 2. That, learned CIT (A) grossly erred is dismissing the appeal in limine even without disposing grounds of appeal s and without considering submissions of the assessee, beside neither any opportunity of being heard is provided nor any enquiry is made on the merits of case, hence rule of substantial justice are defeated.
3. That, without prejudice to above and only in alterative, notice is against the law and on merits addition of Rs. 35,30,500/- u/s 68 of the Act, being the students fee exempted u/s 10(23C)(iiiad), is without any basis and material and against the provisions of law.”
2. None appeared on behalf of the assessee despite service of notice; therefore, appeal of the assessee is being decided on the basis of material placed on record. On the perusal of the impugned order it is seen that, based on AIR information, proceedings u/s 147/148 was initiated vide notice dated 30.3.2017. However, in compliance with such notice, none appeared on behalf of the assessee nor any other notices sent thereafter were complied with. Accordingly, the AO passed the ex-parte order confirming the entire cash deposit of Rs. 35,30,500/- in the bank account to be added u/s 68.
3. Before the Ld. CIT (A) it was submitted that sufficient time was not allowed to the assessee and only notice received by the assessee was dated 30.10.2017 and the date of hearing fixed for hearing was 3.11.2017 and such notice too was received on 4.11.2017. Hence order has been passed without serving proper notice to the assessee. It was also submitted that assessee runs an educational institution which existed solely for ‘educational purposes’ and its receipts was less than Rs. 1 crore and therefore, it was entitled for exemption u/s 10(23C) (iiiad). Further, the cash deposited in the bank account was by way of fees received from the students as assessee runs a college and same was deposited in the bank account; and in support to prove 2