Tribunal grants Misc. Applications, recalls exparte order, emphasizes fair hearing

The Tribunal allowed the assessees' Misc. Applications seeking the recall of the exparte order due to the non-appearance of counsel. Despite the delay in filing the applications, the Tribunal found a valid reason for counsel's absence and emphasized the importance of hearing cases on their merits. Citing a Delhi High Court judgment, the Tribunal held that appeals should not be rejected for non-prosecution without considering the substantive issues. Consequently, the exparte order was recalled, and the appeals were scheduled for regular hearing, ensuring the assessees' right to a fair opportunity to present their case.

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Issues Involved:
Recall of exparte order due to non-appearance of counsel.

Analysis:
The assessees filed Misc. Applications seeking recall of the combined exparte order passed by the Tribunal due to non-appearance of their counsel during the hearing. The counsel for the assessee had requested an adjournment on the hearing date due to work pressure in the Income Tax Department, leading to the exparte order. The assessees argued that the exparte order should be recalled as there was a change in counsel, and the new counsel was ready to appear before the Tribunal. The assessees relied on the decision of the Delhi High Court in a similar case to support their argument that the exparte order should be recalled.

Analysis:
The Departmental Representative opposed the recall of the order, leading to a hearing where both parties presented their arguments. The Tribunal considered the arguments and material on record, noting that the assessees had filed the Misc. Application beyond the time limit prescribed under the Act. However, the Tribunal found that there was a valid reason for the non-appearance of the counsel and that the assessees deserved an opportunity for their case to be heard on merits. The Tribunal referenced the Delhi High Court judgment to support its decision that the ITAT should decide appeals on their merits and not merely reject them for non-prosecution.

Analysis:
The Tribunal highlighted that the ITAT's failure to decide on the merits of the case exceeded its jurisdiction, emphasizing the importance of principles of natural justice. The Tribunal also noted that the ITAT should not reject appeals for non-prosecution without considering the merits. Therefore, the Tribunal allowed the Misc. Applications filed by the assessees and recalled the exparte order dated 21/03/2017, directing the appeals to be posted for regular hearing. The decision was based on the principles outlined in the Delhi High Court judgment, emphasizing the need for appeals to be considered on their merits and decided in accordance with the law after hearing both parties.

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