2013 (5) TMI 897 - AT - Income Tax

Tribunal grants appeal for order recall due to absence, citing legitimate reasons; further hearing scheduled.

Smt. J. Shanthi, Shri P. Venkatesan, Smt. S. Anuradha, & Shri S. Srinivasan Versus The Asstt. Commissioner of Income-tax Circle IX Chennai

Smt. J. Shanthi, Shri P. Venkatesan, Smt. S. Anuradha, & Shri S. Srinivasan Versus The Asstt. Commissioner of Income-tax Circle IX Chennai - TMI Issues involved: The appeal for recall of an order dated 27.11.2012 of the Tribunal in I.T.A.Nos.1377 to 1380/Mds/2012 for assessment year 2007-08 due to the absence of the assessees during the hearing.The assessees filed miscellaneous petitions seeking the recall of the Tribunal's order as they were unable to appear during the hearing due to reasons beyond their control. The notices of hearing were served through Shri G.Kumar, who did not have the authority to receive the notices, and the designated Chartered Accountant, Shri T.R.Subramanian, was indisposed due to a medical condition. The Tribunal had previously decided the issue on merits, partly allowing the Revenue's appeals based on the location of the sold land in a Town Panchayat. The assessees argued that the decision regarding the Town Panchayat's classification was not open for challenge as the appeal was heard ex-parte. The Departmental Representative supported the Tribunal's order, attributing the assessees' absence to negligence without any error warranting a recall.Upon reviewing the contentions, the Tribunal noted that Shri G.Kumar, who received the notices, did not have the Power of Attorney at the time. However, it was acknowledged that the notices were passed on to Shri T.R.Subramanian, who was medically certified to be unfit for official work. The Tribunal had previously classified the area of the sold land as a Town Panchayat, distinct from a Panchayat, leading to the levy of capital gains. The assessees highlighted a contradictory view in a Co-ordinate Bench order, prompting the Tribunal to consider the eligibility of invoking Rule 25 of the Income Tax Appellate Tribunal Rules for the recall. Despite the general limitation on recalling appeals decided on merits, the assessees demonstrated that their absence during the hearing prejudiced them. Consequently, the Tribunal found valid reasons to recall its order, reinstating the appeals for further hearing.The miscellaneous petitions filed by the assessees were allowed, and the order for recall was pronounced in an open court session on May 3, 2013, in Chennai.