2023 (2) TMI 883 - AT - Income Tax

ITAT Mumbai recalls ex-parte order, schedules fresh hearing

Challenger Computers Versus Income Tax Officer Ward–19 (1) (3), Mumbai

Challenger Computers Versus Income Tax Officer Ward–19 (1) (3), Mumbai - TMI Issues:Recall of ex-parte order dated 18/01/2021 under section 254(1) of the Income Tax Act, 1961 due to non-appearance of assessee, sufficiency of cause for non-appearance, recall supported by an Affidavit, fresh hearing of appeals on merits, fixing the appeals for a new hearing date.Analysis:The Appellate Tribunal ITAT Mumbai addressed the issue of recalling a common ex-parte order dated 18/01/2021, passed under section 254(1) of the Income Tax Act, 1961, in response to Miscellaneous Applications filed by the assessee seeking a fresh hearing of their appeals. The assessee's appeals were decided ex-parte due to non-appearance, with the assessee claiming they did not receive any notice fixing the hearing and only became aware of the order after receiving a penalty notice. The Tribunal noted that notices were issued to the assessee on multiple occasions, including through registered post, but found no acknowledgment of receipt in the record. Despite the Departmental Representative opposing the recall, the Tribunal considered the submissions and the supporting Affidavit of the partner of the assessee, concluding that there was sufficient cause for non-appearance. Consequently, the Tribunal deemed it appropriate to recall the ex-parte order and scheduled a fresh hearing of the appeals on 15/02/2023, a date convenient to both parties, dispensing with the service of notice due to the pronouncement in open Court.In its detailed analysis, the Tribunal emphasized the importance of due process and the right to be heard, acknowledging the circumstances leading to the non-appearance of the assessee and the lack of acknowledgment of receipt of notices. The Tribunal's decision to recall the order was based on the principle of fairness and ensuring that the assessee had the opportunity to present their case. By allowing the Miscellaneous Applications filed by the assessee, the Tribunal demonstrated its commitment to upholding procedural justice and providing a fair hearing to all parties involved. The recall of the ex-parte order and the scheduling of a new hearing date underscored the Tribunal's dedication to ensuring that the appeals were decided on their merits and in accordance with the principles of natural justice.