Inherent recall power permits tribunals to set aside ex parte orders and restore appeals where natural justice is breached.

A quasi-judicial tribunal has inherent procedural power to recall an ex parte order passed in violation of natural justice and to restore the appeal for rehearing. This power is distinct from substantive review and is reinforced where the applicable rules expressly permit setting aside an ex parte order on sufficient cause being shown. Rejecting a recall application merely on the ground that no review power exists is unsustainable when non-appearance and denial of hearing are alleged. The contrary view was set aside and the recall applications were directed to be reconsidered afresh in accordance with law.

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Issues: Whether the Tribunal has inherent power to recall an ex parte order passed in violation of natural justice and to restore the appeal for rehearing.

Analysis: The power of rectification is distinct from substantive review, and procedural review includes the power to recall an order. Such power is inherent in every quasi-judicial authority, and Rule 25 of the Income Tax (Appellate Tribunal) Rules, 1963 specifically contemplates setting aside an ex parte order and restoring the appeal where sufficient cause for non-appearance is shown. Rejection of a recall application merely on the ground that no power of review exists is therefore unsustainable where violation of natural justice is asserted.

Conclusion: The Tribunal does have inherent and statutory power to recall an ex parte order and to restore the matter; the contrary view was set aside, and the matter was remanded for reconsideration of the recall applications.

Final Conclusion: The assessee succeeded on the legal question of recall jurisdiction, and the Tribunal was directed to reconsider the applications afresh in accordance with law.

Ratio Decidendi: A quasi-judicial tribunal has inherent power of procedural review to recall an order passed ex parte or in violation of natural justice, and this power is reinforced where the relevant rules expressly permit setting aside such an order and restoring the matter.

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