SHRI GURU SINGH SABHA,NEW DELHI vs. ITO, TRUST WARD- 2, NEW DELHI

While considering the stay application, both the parties have consented for disposal of the appeal itself.

The appeal by assessee has been directed against the order of Ld. CIT(A)-36, New Delhi, dated 17.06.2016 for Assessment Year 2011-12.

Briefly the facts of the case are that the assessee is registered U/s 12A of the IT Act. The assessee claimed to be the charitable society, however, in default of putting in appearance before AO, ex parte assessment order was passed disallowing 30% of the expenses which resulted into the taxable income of the assessee computed at Rs. 53,69,509/-. The assessee preferred an appeal before the Ld. CIT(A), however, there was again a default in appearing before the Ld. CIT(A). The Ld. CIT(A) in absence of the assessee dismissed the appeal of assessee.

After considering the rival submissions, we are in view that the matter requires reconsideration at the level of the Ld. CIT(A). Accordingly to Section 250(6) of the IT Act, the Ld. CIT(A) is required to pass the order on merits given reasons for decision in the appellate order. Even if, assessee did not appear before the Ld. CIT(A), he is required to pass the orders on merits. The Ld. CIT(A), however, dismissed the appeal of the assessee only on default of the assessee without on merits. In view of this matter, the order of the Ld. CIT(A) cannot be sustained in law.

We, accordingly, set aside the impugned order and restore the appeal of the assessee to the file of Ld. CIT(A) with direction to re-decide the appeal of the assessee

In the result, the appeal of the assessee is allowed for statistical purpose. The stay application stands infructuous and dismissed.