Recall of dismissal for non-appearance allowed where reasonable cause prevented appearance, restoring the tax appeal on merits.

An order dismissing an appeal for non-appearance may be recalled under Section 254(2) of the Income-tax Act where the Tribunal is satisfied that the assessee was prevented by reasonable cause from appearing at the hearing. Here, the assessee explained that a change of counsel and the intervening posting of the matter prevented appearance, and the Tribunal accepted this as sufficient cause. The earlier dismissal order was recalled and the appeal restored for hearing on merits.

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Issues: Whether the assessee was entitled to recall of the Tribunal's earlier order dismissing the appeal for non-appearance under Section 254(2) of the Income-tax Act, 1961.

Analysis: The application was founded on the assertion that the assessee could not appear because of a change of counsel and the matter having been posted during the interregnum. The Tribunal accepted that the assessee had been prevented by reasonable cause from appearing on the date of hearing and found sufficient basis to recall the earlier order and restore the appeal for hearing on merits.

Conclusion: The recall application was allowed and the earlier dismissal order was recalled in favour of the assessee.

Ratio Decidendi: An order dismissing an appeal for non-appearance may be recalled under Section 254(2) where the Tribunal is satisfied that the assessee was prevented by reasonable cause from appearing at the hearing.

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