Court quashes dismissal order, restores appeal, imposes costs. No review of merits.

The court allowed the petition, quashed the Tribunal's order dismissing the appeal for non-prosecution due to a change in address, and restored the appeal to the Tribunal for a fresh decision on merits. The court imposed costs of Rs. 10,000 on the petitioner to be paid to the respondent within a week. The court clarified that it did not review the merits of the order passed by the Commissioner of Income Tax (Appeals).

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Issues:
1. Dismissal of appeal by Income Tax Appellate Tribunal for non-prosecution due to change in petitioner's address.
2. Petitioner's challenge against the Tribunal's order.
3. Consideration of delay in challenging the order.
4. Application of rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963.
5. Restoration of appeal to the Tribunal for fresh decision on merits.

Analysis:
1. The petitioner filed an appeal against the order imposing a penalty, but the Tribunal dismissed the appeal for non-prosecution due to the petitioner's failure to inform about the change in address. The Tribunal's action was challenged through a petition under Article 226 of the Constitution of India.

2. The petitioner argued that the Tribunal cannot dismiss the appeal without considering the merits, citing relevant legal precedents. The respondent contended that the delay in challenging the order was considerable and the petitioner's failure to update the address led to the dismissal.

3. The court noted the delay in approaching the court against the Tribunal's order and acknowledged the petitioner's responsibility for not updating the address promptly. The respondent's request for costs was deemed reasonable in this context.

4. The court referred to rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963, which mandates that the Tribunal must hear the appeal on merits even if the appellant is absent. The court held that the Tribunal's dismissal for non-prosecution was contrary to this rule and legal precedent.

5. Consequently, the court allowed the petition, quashed the Tribunal's order, and restored the appeal to the Tribunal for a fresh decision on merits. Costs of Rs. 10,000 were imposed on the petitioner to be paid to the respondent within a week. The court clarified that it did not review the merits of the order passed by the Commissioner of Income Tax (Appeals).

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