2019 (1) TMI 1867 - AT - Income Tax

Ex-parte order - HELD THAT - We find that in spite of service of notices by the Registry neither any one appeared nor there was any adjournment application filed on behalf of assessee for the hearing on 13-08-2018. Thus following the various decisions in the cases of Multiplan India (P) Ltd 1991 (5) TMI 120 - ITAT DELHI-D Hon ble Madhya Pradesh High Court in the case of Estate of late Tukojirao Holkar Vs. CWT 1996 (3) TMI 92 - MADHYA PRADESH HIGH COURT the Tribunal dismissed the appeal of assessee by passing ex parte order for non prosecution. We find that there was sufficient reason for the assessee in not appearing before the Tribunal on the said date of hearing 13-08- 2018 . Therefore in view of submission of assessee we recall the order by allowing this Misc. Application filed by the assessee.

Summary

Issues:
Recall of ex parte order passed by Tribunal due to non-appearance of assessee and subsequent request for fresh adjudication.

Analysis:
The appellant, through a Miscellaneous Application under section 254(2) of the Act, sought to recall the ex parte order dated 13-08-2018 passed by the Tribunal. The order was challenged based on the grounds that the authorized representative could not attend the hearing on time due to unavoidable circumstances, leading to the dismissal of the appeal. The appellant contended that the order of the Commissioner of Income Tax (Appeal)-2, Ahmedabad, confirming the addition of professional fees paid to a related party, was erroneous as the facts and evidence were not adequately considered. The authorized representative's failure to appear for the hearing on 7-8-2018 resulted in the ex parte order on 13-8-2018, which the appellant sought to recall due to a genuine mistake on the representative's part.

The Tribunal, after hearing both parties, acknowledged that no one appeared for the hearing on 13-08-2018, and no adjournment application was filed on behalf of the assessee. Citing precedents, the Tribunal noted that there was a sufficient reason for the assessee's non-appearance on the scheduled date. Considering the submissions made by the assessee, the Tribunal decided to recall the order dated 13-08-2018 and allowed the Miscellaneous Application filed by the assessee. The next date of hearing was set for 08/04/2019, with communication sent to both parties without the need for separate notices.

In conclusion, the Tribunal granted the appellant's request to recall the ex parte order, emphasizing the need for a fresh adjudication of the matter based on the circumstances leading to the non-appearance and subsequent dismissal of the appeal.