Ancillary power to recall an ex parte appellate order and grant rehearing where sufficient cause prevented appearance.

A statutory appellate tribunal's wide appellate jurisdiction carries, by necessary implication, incidental or ancillary power to recall an ex parte order and restore an appeal for rehearing where a party was prevented by sufficient cause from appearing or effectively presenting its case, unless the statute expressly bars that course. The absence of an express prohibition means the tribunal may exercise such power to make the appellate remedy effective and ensure a fair hearing. The contrary view that it lacked jurisdiction to consider restoration was therefore unsustainable, and the tribunal could entertain the application for rehearing in an appropriate case.

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Issues: Whether the Income-tax Appellate Tribunal had inherent or ancillary power to recall its order and restore the appeal for rehearing when the assessee had been unable to appear for sufficient cause.

Analysis: The appellate jurisdiction of the Tribunal under section 33(4) of the Indian Income-tax Act, 1922, is of wide amplitude and carries by necessary implication all powers reasonably required to make that jurisdiction effective. Where no express prohibition exists, a statutory appellate authority may exercise incidental or ancillary powers to ensure a fair and proper opportunity of hearing. An order passed in the absence of a party, where the party was prevented by sufficient cause from appearing or from effectively placing its case, can therefore be recalled in an appropriate case so that the appeal may be reheard. The refusal to entertain the restoration application proceeded on an erroneous assumption that the Tribunal lacked jurisdiction to cancel its earlier order.

Conclusion: The Tribunal had jurisdiction to consider the restoration application and to rehear the appeal in an appropriate case, and its contrary view was unsustainable.

Ratio Decidendi: An express statutory grant of appellate jurisdiction carries with it, by necessary implication, the incidental or ancillary power to recall an ex parte appellate order and afford rehearing where such power is required to make the statutory remedy effective and is not barred by the statute.

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