Tribunal recall of ex parte appeal order upheld where sufficient cause existed for the assessee's non-appearance.

Rule 24 of the Income-tax (Appellate Tribunal) Rules, 1963 permits the Tribunal to dispose of an appeal on merits in the absence of the appellant or authorised representative. The proviso empowers recall of such an ex parte order where sufficient cause for non-appearance is shown. On the facts recorded, the Tribunal was satisfied that the absence was for sufficient reason and therefore acted within its recall power. The Delhi High Court noted that no substantial question of law arose from the recall order, and the recall of the ex parte disposal was sustained.

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Issues: Whether the Tribunal was justified in recalling its ex parte order disposing of the appeal on merits in the absence of the assessee.

Analysis: The ex parte disposal was traceable to Rule 24 of the Income-tax (Appellate Tribunal) Rules, 1963, which permits disposal of an appeal on merits in the absence of the appellant or its authorised representative. The proviso to Rule 24 expressly empowers the Tribunal to recall such an order where it is satisfied that there was sufficient cause for non-appearance. The Tribunal recorded satisfaction that the absence was for sufficient reason and, therefore, acted within its recalled power. No substantial question of law arose from the order.

Conclusion: The recall of the ex parte order was upheld and the appeal failed.

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