Restoration of ex parte appeals requires a fair hearing on merits when non-appearance is satisfactorily explained.

Where an ex parte appeal is decided in the absence of the assessee, a supported recall application should be allowed if the non-appearance is satisfactorily explained. Here, the assessee produced an affidavit and medical certificate showing that the partner who received notice was not handling the case, had gone out of station, and later fell ill, preventing communication to the other partner. As no serious dispute was raised against that explanation, the Tribunal was held unjustified in refusing restoration. The ex parte orders were directed to be recalled so the appeals could be heard afresh on merits after proper opportunity to both sides.

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Issues: Whether the Tribunal was justified in refusing to recall ex parte orders and in rejecting the restoration applications despite the assessee's explanation for non-appearance.

Analysis: The ex parte appeals had been decided without appearance on the hearing date. The applications to recall the orders were supported by an affidavit and medical certificate explaining that the partner who received notice was not handling the case, had gone out of station, and had fallen ill, preventing communication to the other partner. In such circumstances, where the absence was explained and no serious dispute was shown against the explanation, restoration was held to be appropriate to secure a hearing on merits rather than to sustain a technical refusal.

Conclusion: The Tribunal was not justified in rejecting the restoration applications; the ex parte orders were rightly directed to be recalled and the appeals were to be heard afresh after giving proper opportunity to both parties.

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