Tribunal grants recall of order under Income Tax Act for fresh hearing: Fair opportunity ensured

The Tribunal allowed the assessee's Miscellaneous Application, recalling the ex-parte order dated 25/09/2018 under section 254(1) of the Income Tax Act, 1961, and scheduled a fresh hearing for the assessment year 2014-15. The Tribunal considered the reasons for non-appearance, including the initial notice being unserved as the assessee was out of station, and granted the recall based on the submissions and an Affidavit filed by the assessee. The fresh hearing was set for 10/10/2022, ensuring a fair opportunity for the assessee to present their case.

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Issues:
1. Recall of ex-parte order dated 25/09/2018 under section 254(1) of the Income Tax Act, 1961.
2. Non-appearance of the assessee during the initial hearing.
3. Submission of a Miscellaneous Application seeking recall of the order.
4. Consideration of the reasons for non-appearance by the assessee.
5. Decision on the recall of the ex-parte order and scheduling a fresh hearing.

Analysis:

1. The Miscellaneous Application was filed by the assessee to recall the ex-parte order dated 25/09/2018, passed under section 254(1) of the Income Tax Act, 1961, by the Co-ordinate Bench of the Tribunal in the assessee's appeal for the assessment year 2014-15. The order was passed as none appeared on behalf of the assessee during the initial hearing.

2. The learned A.R. submitted that the assessee's appeal was decided ex-parte due to non-appearance, as the notice of hearing was returned unserved since the assessee and family members were out of Mumbai. The Miscellaneous Application sought a fresh hearing on merits, emphasizing that there was no change in the assessee's address.

3. The learned D.R. opposed the recall, noting that no one appeared on behalf of the assessee during previous hearings. However, the Tribunal considered the submissions and material on record, finding that the first notice of hearing was not received by the assessee due to being out of station, as supported by an Affidavit filed by the assessee.

4. The Tribunal observed that the Miscellaneous Application had been listed since February 2019, with several adjournments granted at the assessee's request. Despite repeated notices, no appearance was made on behalf of the assessee until a direction was issued to the Authorised Representative to appear. The Tribunal acknowledged the reasons for non-appearance and deemed it appropriate to recall the ex-parte order for a fresh hearing based on the submissions and the undertaking given by the learned A.R.

5. Consequently, the Tribunal allowed the assessee's Miscellaneous Application, recalling the ex-parte order and scheduling a fresh hearing on 10/10/2022. The date was set convenient for both parties, with the service of notice dispensed with due to the pronouncement in the open Court, ensuring a fair opportunity for the assessee to present their case.

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