Tribunal Grants Application to Recall Ex Parte Order in Appeal

The Tribunal allowed the miscellaneous application seeking to recall the ex parte order in the appeal. It was determined that the non-appearance of the counsel was due to valid reasons related to professional commitments during a busy period for income tax matters. Citing principles of natural justice and legal precedents, the Tribunal concluded that the order should be set aside to ensure fairness and prevent prejudice. The appeal was directed to be heard afresh to address the concerns raised and uphold the rights of the parties involved.

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Issues:
- Recall of Tribunal order passed ex parte due to non-appearance of counsel

Detailed Analysis:
The miscellaneous application was filed by the assessee seeking to recall the Tribunal order passed ex parte in relation to an appeal. The applicant contended that there was a valid reason for the non-appearance of her counsel on the date of hearing, as he was occupied with preparing income tax returns due to the impending deadline. The applicant argued that the ex parte order should be recalled in the interest of justice. On the contrary, the Departmental Representative argued that the order was passed on merits, and no injustice was caused even if there was no reasonable cause for non-appearance.

Upon examining the case, the Tribunal noted that the appeal was adjourned twice, and the second adjournment request was rejected due to it being a stay granted matter. The counsel for the applicant emphasized that the last week of July was a busy period for income tax matters, making it difficult for the counsel to appear. The counsel presented various reasons to show that the ex parte order violated the principles of natural justice. The Tribunal reviewed the facts and arguments presented by both sides, including the contentions regarding the paper book already on record and the reasons for seeking adjournment.

The Tribunal considered the precedents set by higher courts in similar cases. It referenced a case where the High Court emphasized accommodating counsel's professional commitments and respecting other court obligations. Additionally, the Tribunal cited a case where the Madras High Court ruled in favor of recalling an ex parte order when a sufficient cause for non-appearance was shown. The Supreme Court's decision highlighted the importance of rectifying mistakes to prevent prejudice to either party.

Based on the legal principles and precedents, the Tribunal concluded that the ex parte order should be recalled and the appeal should be heard afresh. The Tribunal directed the registry to schedule the appeal for a new hearing date, emphasizing the need to address the reasonable cause for non-appearance and prevent any prejudice to the parties involved. Ultimately, the miscellaneous application seeking the recall of the Tribunal order was allowed, and the ex parte order was set aside for a fresh hearing.

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