Sufficient cause for non-appearance can justify recall of an ex parte Tribunal order and restoration of the appeal.

Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963 empowers the Tribunal to recall an ex parte appellate order and restore the appeal where the appellant shows sufficient cause for non-appearance when the matter was called for hearing. On the stated facts, the assessee's bona fide mistake in noting the hearing date and the sudden difficulty of counsel were accepted as sufficient cause, supported by prior appearances on earlier dates. The ex parte order was therefore recalled and the appeal restored for fresh hearing.

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Issues: Whether the ex parte appellate order should be recalled and the appeal restored for fresh hearing on the assessee showing sufficient cause for non-appearance.

Analysis: Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963 permits the Tribunal to set aside an ex parte order and restore the appeal where the appellant subsequently satisfies the Tribunal that there was sufficient cause for non-appearance when the appeal was called on for hearing. The assessee explained that non-appearance on the relevant date was due to a bona fide oversight in noting the hearing date and a sudden personal difficulty of counsel, and the record showed that representation had been made on earlier dates, though mainly for adjournment.

Conclusion: Sufficient cause was found to exist, and the ex parte order was recalled with the appeal restored for fresh hearing in favour of the assessee.

Ratio Decidendi: An ex parte order of the Tribunal may be recalled and the appeal restored where the appellant demonstrates sufficient and reasonable cause for non-appearance on the hearing date.

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