2014 (7) TMI 132 - AT - Income Tax

Recall of order Rectification of order Held that - There is defect the form of appeal filed by the assessee, inasmuch as it has been signed by the Voice President (Finance) and not by the Managing Director of the assessee company, who alone is competent to sign the same - Reason for this was stated to be that the Managing Director was out of country at the relevant point of time - even though the said defect has been rectified, date on the Form 36 was allowed to remain the same as in the earlier Form No.36 - Since on the date on which earlier Form No.36 was signed, assessee s Managing Director was stated to have been out of country, observing that on that very date the Managing Director could not have signed the revised Form No.36, the Tribunal dismissed the appeal of the assessee as defective - there is no mistake apparent from the record in the order of the Tribunal, the dismissal of the appeal was for a procedural and technical defect in the Form of Appeal/Revised Form of Appeal, viz. Form No.36, filed by the assessee, in the interests of justice and taking a lenient view of the matter - the earlier order of the Tribunal dated 11.2.2014 is recalled, duly taking on record the Revised Form of Appeal Decided in favour of Assessee.

Summary

Issues involved:
Recall of ex-parte order due to procedural defect in appeal filing, restoration of appeal for fresh hearing and disposal.

Analysis:
The assessee filed a Miscellaneous Application seeking the recall of an ex-parte order by the Tribunal dated 11.2.2014 in appeal ITA No.137/Hyd/2014 for the assessment year 2009-10. The application highlighted a procedural error in the appeal filing process, where the Form No.36 was initially signed by the Vice President (Finance) instead of the Managing Director, who was unavailable at the time. Despite rectifying this error by submitting a fresh Form No.36 signed by the Managing Director, the Tribunal dismissed the appeal as defective due to discrepancies in the dates mentioned. The assessee requested the Tribunal to restore the appeal by invoking the provisions of the Income Tax Act and pass appropriate orders. The learned counsel for the assessee reiterated these points during the hearing, emphasizing the need for a fresh hearing and disposal of the appeal.

The Departmental Representative opposed the request, stating that there was no apparent mistake in the Tribunal's order. However, upon hearing both sides and examining the records, the Tribunal acknowledged the procedural defect in the form of appeal filed by the assessee. Although there was no clear mistake in the Tribunal's order, it was noted that the dismissal of the appeal was based on a technical error in the appeal filing process. In the interest of justice and taking a lenient view, the Tribunal decided to recall the earlier order dated 11.2.2014. The revised Form of Appeal, Form No.36, signed by the Managing Director, was accepted, and the appeal was scheduled for fresh hearing and disposal on a specified date. The Registry was directed to process the revised Form of Appeal and issue necessary notices for the upcoming hearing.

In conclusion, the Miscellaneous Application of the assessee was treated as allowed, and the Tribunal pronounced the order at the conclusion of the hearing on 13.06.2014. The judgment highlighted the importance of procedural compliance in appeal filings and the Tribunal's discretion to recall orders based on technical defects to ensure a fair hearing and disposal of the appeal.