High Court quashes Tribunal orders, restores IT Appeal for hearing

The High Court quashed the Tribunal's orders dated 31.07.2018 and 12.12.2014. The original IT Appeal was restored for a hearing and disposal in accordance with the law, with the writ applicant expected to cooperate for expeditious resolution.

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Issues Involved:
1. Quashing of the order dated 31.07.2018 by the Tribunal.
2. Quashing of the order dated 12.12.2014 by the Tribunal.
3. Condonation of delay in filing the miscellaneous application.
4. Dismissal of appeal for non-prosecution.

Detailed Analysis:

1. Quashing of the Order Dated 31.07.2018 by the Tribunal:
The writ applicant sought the quashing of the Tribunal's order dated 31.07.2018, which dismissed the miscellaneous application as time-barred. The Tribunal observed that the application for rectifying any mistake apparent from the record must be filed within six months from the end of the month in which the order was passed, as per the amendment effective from 1st June 2016. The application filed on 23.05.2017 was beyond this time limit. The argument presented was that the new limitation period should not extinguish a vested right of action, effectively applying the amendment retrospectively.

2. Quashing of the Order Dated 12.12.2014 by the Tribunal:
The writ applicant also sought to quash the Tribunal's order dated 12.12.2014, which dismissed the appeal for non-prosecution. The Tribunal's decision was challenged on the grounds that it could not dismiss the appeal without addressing the merits, even in the absence of the appellant. The Tribunal's reliance on the decision in CIT vs. Multiplan India (P) Ltd. was deemed misplaced, as established by the Supreme Court in CIT vs. S. Chenniappa Mudaliar and other High Court rulings.

3. Condonation of Delay in Filing the Miscellaneous Application:
The Tribunal's refusal to condone the delay in filing the miscellaneous application was challenged. The argument was supported by the Supreme Court's decision in M.P. Steel Corporation vs. Commissioner of Central Excise, which held that a new law of limitation should not extinguish a vested right of action. The Madhya Pradesh High Court's decision in District Central Coop. Bank Ltd. vs. Union of India, which relied on the M.P. Steel Corporation case, was also cited.

4. Dismissal of Appeal for Non-Prosecution:
The Tribunal's dismissal of the appeal for non-prosecution was found unsustainable. The High Court referred to its own decision in Sanket Estate & Finance Pvt. Ltd. vs. Commissioner of Income Tax, which emphasized that the Tribunal must dispose of appeals on merits even in the absence of the appellant. The Tribunal's reliance on the decision in CIT vs. Multiplan India (P) Ltd. was erroneous. The High Court reiterated that the Tribunal must hear the respondent and decide on merits, allowing for restoration if the appellant later shows sufficient cause for non-appearance.

Conclusion:
The High Court quashed and set aside the Tribunal's orders dated 31.07.2018 and 12.12.2014. The original IT Appeal No.1263/AHD/2011 was restored to its original file, with instructions for the Tribunal to fix a hearing and dispose of the appeal in accordance with the law. The writ applicant was expected to cooperate fully in the expeditious disposal of the appeal. The writ application was disposed of accordingly.

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