Restoration of ex parte appeal on sufficient cause is a valid procedural power, not an impermissible review of the merits.

Where the governing appellate rule expressly permits an ex parte disposal to be set aside on sufficient cause being shown, the Tribunal may recall that order and restore the appeal without engaging in an impermissible review of the merits. The High Court distinguished authorities dealing only with rectification or review, holding that they did not control a rule containing an express restoration power. The statutory framework therefore authorised the Tribunal to reinstate the appeal for hearing in accordance with law, and the challenge to the recall order failed.

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Issues: Whether the Income-tax Appellate Tribunal had power to recall an ex parte order and restore the appeal when the appellant showed sufficient cause for non-appearance.

Analysis: The appeal turned on the scope of the Tribunal's powers under the applicable rules and the distinction between an impermissible review of a concluded order and a permissible setting aside of an ex parte disposal. The Court distinguished cases dealing with mere rectification or review and noted that the relevant rule expressly permitted the Tribunal to dispose of an appeal on merits in the appellant's absence and, on sufficient cause being shown, to set aside the ex parte order and restore the appeal. The earlier authorities were held not to govern the present situation because they did not deal with a rule containing such an express restoration provision. The Court further held that the statutory framework authorised the Tribunal to restore the matter for hearing in accordance with law.

Conclusion: The Tribunal had jurisdiction to recall the ex parte order and restore the appeal, and the challenge to that order failed.

Ratio Decidendi: Where the governing appellate rule expressly provides for setting aside an ex parte order on sufficient cause being shown, such restoration is not a review of the merits but a lawful procedural power to ensure disposal of the appeal in accordance with law.

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