2022 (4) TMI 1508 - AT - Income Tax

Ex-parte orders passed by tribunal - as submitted that the non-appearance from the side of assessee was on account of non-receipt of notice for hearing on the day when the appeals were fixed for hearing - HELD THAT - Before us no material has been placed by Revenue to demonstrate that the reasons given by assessee for non- appearance by the assessee on the date of hearing was false. In view of the aforesaid facts and in view of the well settled principle that sufficient opportunity of hearing should be afforded to parties and no party should be condemned unheard we are of the view that in the interest of the justice ex parte orders passed by the Tribunal needs to be recalled.

Summary

Issues:
Recalling ex parte order due to non-receipt of hearing notice.

Analysis:
The Assessee filed Miscellaneous Applications under section 254(2) of the Income Tax Act, 1961, seeking to recall the Tribunal's order dated 26.10.2018 in various appeals for Assessment Years 2007-08, 2008-09, and 2009-10. The Assessee contended that the appeals were decided ex-parte as they did not receive the hearing notice, leading to their non-appearance. The Assessee's representative emphasized that the non-appearance was not intentional and relied on an affidavit by the director to support the claim of non-receipt of notice. The Assessee requested the orders to be recalled in the interest of justice to allow for a hearing opportunity.

The Learned DR did not dispute the Assessee's submissions but objected to recalling the order, citing that the Tribunal had already passed a speaking order. However, the Tribunal found no evidence provided by the Revenue to challenge the Assessee's claim of not receiving the notice. Considering the principle of affording sufficient hearing opportunities and ensuring parties are not condemned unheard, the Tribunal decided to recall the ex parte orders for the mentioned Assessment Years. The Tribunal directed the appeals to be fixed for a new hearing date without the need for separate notice issuance, as the date was announced in the open court.

In conclusion, the Tribunal allowed all the Miscellaneous Applications filed by the Assessee, recalling the ex parte orders and setting new hearing dates for the appeals. The decision was pronounced in open court on 01.04.2022, emphasizing the importance of providing fair hearing opportunities and ensuring parties are not prejudiced due to procedural lapses.