2019 (5) TMI 1385 - AT - Income Tax

Tribunal recalls ex-parte order for Assessee due to valid reasons, schedules new hearing date.

The Tribunal allowed the Assessee's Miscellaneous Application under section 254(2) to recall the ex-parte order due to non-appearance. The Appellant's ... Dismissal of appeal ex-parte for non prosecution - neither any one appeared nor there was any adjournment application filed on behalf of assessee - HELD THAT:- On perusal of the order dt. 30.11.2018, we find that in spite of service of notices by the Registry neither any one appeared nor there was any adjournment application filed on behalf of assessee for the hearing on 18.10.2018. Thus, following the various decisions in the cases of Multiplan India (P) Ltd [1991 (5) TMI 120 - ITAT DELHI-D] , Hon'ble Madhya Pradesh High Court in the case of Estate of late Tukojirao Holkar Vs. CWT [1996 (3) TMI 92 - MADHYA PRADESH HIGH COURT] the Tribunal dismissed the appeal of assessee by passing ex parte order for non prosecution. We find that there was sufficient reason for the assessee in not appearing before the Tribunal on the said date of hearing [10.10.2018]. Therefore, in view of submission of assessee we recall the order dated 30.11.2018 by allowing this Misc. Application filed by the assessee. Issues: Application to recall ex-parte order due to non-appearance before Tribunal.Analysis:1. The Assessee filed a Miscellaneous Application under section 254(2) of the Act to recall the impugned ex-parte order dated 30.11.2018 passed by the Tribunal.2. The Appellant's representative argued that the Tribunal had dismissed the appeal due to non-appearance, citing a decision by the Hon'ble Delhi Tribunal in a similar case. The Appellant sought to rectify the order based on a decision of the Hon'ble Bombay High Court in another case.3. The Appellant, a senior citizen not well-versed in tax laws, had engaged a Chartered Accountant to represent them. Unfortunately, the appointed counsel passed away before the hearing, leading to non-appearance. Subsequent confusion regarding representation resulted in the appeal being dismissed ex-parte.4. The Appellant contended that they were genuinely interested in pursuing the appeal and had taken all necessary steps, including engaging a new Chartered Accountant. They believed they had a strong case on merits and requested the order to be recalled for a fresh hearing.5. The Departmental Representative raised no objection to recalling the matter for fresh adjudication, and the Tribunal, upon considering the circumstances, found sufficient reason for the Assessee's non-appearance on the hearing date.6. Consequently, the Tribunal allowed the Miscellaneous Application, recalling the order dated 30.11.2018, and scheduled a new hearing date without sending further notices to the parties.7. The decision was pronounced in Open Court on 22-05-2019, granting the Assessee's application to recall the ex-parte order for non-appearance before the Tribunal.