2018 (1) TMI 1708 - AT - Income Tax

Appeals Dismissed for Non-Appearance by Assessee: ITAT Delhi Decision

The Appellate Tribunal ITAT DELHI dismissed the appeals filed by the Assessee against the Orders of the Ld. CIT(A)-2 for assessment years 2011-12 & ... Dismissal for non-prosecution - treating appeal as unadmitted - power under Rule 19(2) of the ITAT Rules to dismiss for non-prosecution - recall of order on explanation for non-appearanceDismissal for non-prosecution - treating appeal as unadmitted - power under Rule 19(2) of the ITAT Rules to dismiss for non-prosecution - Appeals dismissed in limine and treated as unadmitted for non-appearance of the assessee/its representative. - HELD THAT: - The Tribunal recorded that notices for hearing were served and that neither the assessee nor any authorised representative attended nor applied for adjournment. Applying Rule 19(2) of the ITAT Rules and following precedents of the Delhi Bench and the Madhya Pradesh High Court, the Tribunal held that repeated service would be futile and accordingly treated the appeals as unadmitted and dismissed them in limine. The order expressly refrained from adjudicating the merits of the appeals because the dismissal was for non-prosecution rather than on substantive grounds. [Paras 3, 4, 5]Both appeals dismissed in limine and treated as unadmitted for non-prosecution.Recall of order on explanation for non-appearance - Tribunal's power to recall the dismissal if a satisfactory explanation for non-appearance is subsequently furnished by the assessee. - HELD THAT: - The Tribunal clarified that the dismissal is subject to recall: if the assessee subsequently explains reasons for non-appearance and the Bench is satisfied with the explanation, the matter may be recalled for adjudication of the appeals. This preserves the limited remedial avenue without adjudicating merits at this stage. [Paras 4]Dismissal may be recalled upon a satisfactory explanation for non-appearance.Final Conclusion: Both appeals for AYs 2011-12 and 2012-13 were dismissed in limine and treated as unadmitted for non-prosecution under Rule 19(2) of the ITAT Rules; the dismissal is susceptible to recall if the assessee later furnishes a satisfactory explanation for non-appearance. Issues: Failure to attend hearing, dismissal of appeals for non-appearance, application for adjournment not filedIn the judgment delivered by the Appellate Tribunal ITAT DELHI, the appeals were filed by the Assessee against the Orders of the Ld. CIT(A)-2, New Delhi for assessment years 2011-12 & 2012-13. The Assessee and its Authorized Representative did not attend the hearing on 24.01.2018, nor did they file any application for adjournment. Consequently, the Tribunal concluded that the Assessee showed no interest in prosecuting the Appeals. Citing Rule 19(2) of ITAT Rules and previous decisions, including Multiplan India Ltd. and Estate of Late Tukojirao Holkar vs. CWT, the Tribunal treated the appeals as unadmitted and dismissed them. However, the Tribunal clarified that if the Assessee provides reasons for non-appearance later, and the Bench is satisfied, the matter may be recalled for adjudication. The judgment was pronounced on 24-01-2018, and both appeals were dismissed in limine.