Ex parte Tribunal order recalled for sufficient cause, subject to fresh payment of appeal fee under the proper head.

An ex parte Tribunal order may be recalled where the assessee shows reasonable cause for non-appearance, and a bona fide misunderstanding of the defect memo and hearing date can amount to sufficient cause under Rule 24 of the ITAT Rules, 1963. On that basis, the matter was restored in favour of the assessee. The Tribunal also held that payment of the appeal fee under the wrong head required fresh compliance, so recall was made conditional on depositing the fee under the proper head within the stipulated time and producing proof on the next hearing date.

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Issues: Whether the ex parte Tribunal order could be recalled on the assessee showing reasonable cause for non-appearance and on compliance with the condition of paying the appeal fee under the proper head.

Analysis: The assessee explained that non-appearance on the hearing date resulted from a bona fide misunderstanding of the defect memo and the date fixed by the Tribunal. The Tribunal found the explanation reasonable for the purpose of Rule 24 of the ITAT Rules, 1963 and was satisfied that sufficient cause existed to restore the matter. At the same time, the Tribunal noticed that the appeal fee had been paid under the wrong head and treated that defect as requiring fresh compliance.

Conclusion: The ex parte order was recalled in favour of the assessee, subject to fresh payment of appeal fee under the proper head within the stipulated time and production of proof on the next hearing date.

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