Tribunal Allows Application to Recall Ex-Parte Order Amidst Pandemic Conditions

The Tribunal allowed the assessee's application to recall the ex-parte order dated 20/01/2022 in ITA Nos.321 & 322/Hyd/2018 for AY 2009-10 due to non-appearance during a virtual hearing amidst pandemic conditions. The Tribunal considered the impact of the pandemic on proceedings and accepted the assessee's reasons for non-appearance, citing compliance obligations and the missed adjournment request. Relying on Rule 24 of the ITAT, the Tribunal set aside the order and restored the appeal for hearing without fresh notices, granting both Miscellaneous Applications on 22nd April 2022.

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Issues: Application for recall of order due to non-appearance of assessee during a virtual hearing amidst pandemic conditions.

Analysis:
1. Application for Recall of Order: The assessee filed two Miscellaneous Applications seeking to recall the order dated 20/01/2022 in ITA Nos.321 & 322/Hyd/2018 for the AY.2009-10. The assessee cited the pandemic conditions as the reason for non-appearance on 17/01/2022, the day the order was passed ex-parte. Additional evidences were submitted on 07/01/2022, and the assessee believed an adjournment would be granted due to the ongoing pandemic situation. The Ld.AR relied on Rule 24 of the Income Tax Appellate Tribunal Rules, 1963, requesting an opportunity to contest the matter on merits.

2. Opposition by Ld. DR: The Learned DR opposed the petition, arguing that the matter was disposed of on merits, and the only remedy available to the assessee is to prefer an appeal. It was contended that there was no mistake apparent on the face of the record.

3. Judicial Analysis: The Tribunal considered the submissions from both sides and acknowledged the impact of the pandemic on the conduct of proceedings. It was noted that the assessee had applied for an adjournment on 07/01/2022 due to pending tax audit reports and compliance requirements under the Companies Act. The Tribunal found that the letter requesting an adjournment was missed, leading to the ex-parte order. Referring to the principle of "actus curiae neminum gravabit," the Tribunal held that the act of the Court shall not prejudice anyone's case.

4. Decision and Order: After reviewing the circumstances, the Tribunal found sufficient cause for the non-appearance of the assessee, considering the pandemic situation and compliance obligations. Relying on Rule 24 of the ITAT, which allows setting aside an order when satisfied with the reason for non-appearance, the Tribunal accepted the assessee's request to recall the order dated 20/01/2022 and restore the appeal. The Tribunal directed the Registry to fix the appeals for hearing on 19/05/2022, without issuing fresh notices, as both parties noted the next date of hearing in open court. Consequently, both Miscellaneous Applications were allowed, and the order was pronounced on 22nd April 2022.

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