Recall of ex parte order for sufficient cause where the assessee was denied a proper and adequate hearing opportunity.

An ex parte order may be recalled where the assessee shows sufficient cause for non-appearance and the record reflects that a proper and adequate opportunity of hearing was not provided. Here, the tribunal accepted that no notice of the subsequent hearing had been received and that the absence was not deliberate. It held that the assessee had shown sufficient reason for non-appearance and had not been afforded a fair opportunity to present and substantiate the case. The ex parte order was recalled, the appeal was restored for fresh hearing before the Regular Bench, and the miscellaneous application was allowed.

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Issues: Whether the ex parte order deserved to be recalled on the ground that the assessee had sufficient cause for non-appearance and had not been afforded a proper and adequate opportunity of hearing.

Analysis: The assessee sought recall of the ex parte order under Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963 read with section 254 of the Income-tax Act, 1961, explaining that no notice of the subsequent hearing was received and that the absence was not deliberate. The Tribunal accepted the explanation and found sufficient reason for the non-appearance. It further held that the assessee had not been given a proper and adequate opportunity to present and substantiate the case.

Conclusion: The ex parte order was recalled and the appeal was restored for fresh hearing before the Regular Bench. The miscellaneous application was allowed.

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