Failure to appear due to reasonable cause permits restoration under Rule 24; appeal restored for hearing on merits.

Application under Rule 24 concerned restoration of an appeal dismissed ex parte; the Tribunal applied the Rule 24 test requiring the appellant to show sufficient cause for non-appearance and found that the authorised representative was engaged in another courtroom, constituting sufficient cause. The Tribunal found no mala fide intent or deliberate default and held that principles of natural justice required an opportunity to be heard; accordingly the ex parte order was set aside and the appeal restored for hearing on merits in favour of the assessee.

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Issues: Whether the ex-parte dismissal of the appeal in ITA No. 3003/Mum/2023 dated 13.01.2025 should be set aside and the appeal restored for hearing on merits under Rule 24 of the Income Tax Appellate Tribunal Rules, 1963.

Analysis: The Tribunal examined the record and the material placed on record including proof that the authorised representative was engaged in another courtroom on the date fixed for hearing. The Tribunal applied Rule 24 of the Income Tax Appellate Tribunal Rules, 1963 which permits setting aside an ex parte order where the appellant satisfies the Tribunal that there was sufficient cause for non appearance. The Tribunal found no mala fide intent or deliberate default and held that principles of natural justice require deciding the lis on merits after providing opportunity of hearing. On this basis the Tribunal concluded that the requirements for restoration under Rule 24 were satisfied and directed restoration of the appeal for hearing by the regular bench.

Conclusion: The Tribunal allowed the Miscellaneous Application, recalled the ex parte order in ITA No. 3003/Mum/2023 dated 13.01.2025 and restored the appeal for hearing on merits in favour of the assessee.

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