ITAT Ahmedabad recalls appeal for fresh hearing due to non-service of notice

The Appellate Tribunal ITAT Ahmedabad considered a Miscellaneous Application for rectification of an ex parte assessment order under s. 254(1) of the Act due to non-service of notice. The Tribunal decided to recall the appeal for a fresh hearing to uphold the principles of natural justice. The appeal was scheduled for a new hearing, with the Registry directed to list it in consultation with both parties. The formal notice of hearing was dispensed with the consent of both parties, and the miscellaneous application seeking rectification was allowed.

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Issues:
Rectification of order under s. 254(1) of the Act due to non-service of notice leading to an ex parte assessment.

Analysis:
The Appellate Tribunal ITAT Ahmedabad considered a Miscellaneous Application filed by the assessee seeking rectification of an order dated 23.02.2018 passed under s. 254(1) of the Act. The application highlighted that the notice of hearing for the appointed date was not served on the assessee, resulting in an ex parte assessment order. The learned AR representing the assessee argued for the matter to be recalled for fresh hearing to allow the assessee to defend its appeal. The Tribunal, acknowledging the circumstances presented, decided to recall the appeal for a fresh hearing to uphold the principles of natural justice.

The Tribunal noted that recalling the appeal for a fresh hearing would ensure the principle of natural justice is upheld, as the earlier order passed in the absence of the assessee was set aside. The appeal was scheduled for a fresh hearing on 25.07.2019, with the Registry directed to list the appeal in consultation with both parties. The formal notice of hearing was dispensed with the consent of both parties. As a result, the miscellaneous application filed by the assessee seeking rectification was allowed. The order was pronounced in the Open Court on 03/05/2019.

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