2018 (10) TMI 1356 - HC - Income Tax

Restoration of appeal - ITAT dismissed the appeal - Non-appearance of the petitioner or his advocate before ITAT - Held that - We do notice a degree of negligence or lethargy on part of the petitioner in participating before the Tribunal. This may be on account of the petitioner s own volition or his authorized representative. Be that as it may, the petitioner simply cannot get away from the responsibility of not having assisted the Tribunal properly. We are inclined to allow the petitioner to appear before the Tribunal and argue his case. This is so for two reasons. Firstly, the Rule would require the Tribunal to hear the appeal on merits even if a party is absent. Instead, in the present case, the Tribunal has dismissed the appeal without order on merits. Secondly, when we are remanding the proceedings before the Tribunal for decision on merits, upon imposition of cost at least the petitioner may be allowed to argue the case.

Summary

Issues:
1. Dismissal of Tax Appeal by the Income Tax Appellate Tribunal due to non-appearance of the petitioner or his advocate.
2. Rejection of petitioner's application for rectification.
3. Negligence or lethargy on part of the petitioner in participating before the Tribunal.
4. Tribunal's dismissal of the appeal without order on merits.
5. Setting aside of orders dated 23.04.2018 and 07.07.2016.
6. Revival of petitioner's tax appeal before the Tribunal.
7. Fixing a date for the petitioner to appear before the Tribunal.
8. Imposition of a cost of &8377; 25,000/- for the petitioner to argue the case on merits.

The High Court noted that the petitioner's Tax Appeal before the Income Tax Appellate Tribunal was dismissed due to non-appearance of the petitioner or his advocate, with the application for rectification also being rejected. The Court observed a degree of negligence or lethargy on the petitioner's part in participating before the Tribunal, emphasizing the petitioner's responsibility in assisting the Tribunal properly. Despite this, the Court decided to allow the petitioner to appear before the Tribunal and argue the case. This decision was based on two main reasons: firstly, the Rule requiring the Tribunal to hear the appeal on merits even in the absence of a party, and secondly, the Tribunal's dismissal of the appeal without deciding on merits. The Court set aside the orders dated 23.04.2018 and 07.07.2016, reviving the petitioner's tax appeal before the Tribunal. The petitioner was directed to appear before the Tribunal personally or through a representative on a specified date, with the Tribunal having the discretion to reschedule the hearing thereafter. Additionally, the petitioner or his representative would be allowed to argue the case on merits only after depositing a cost of &8377; 25,000/- with the Revenue. Ultimately, the petition was disposed of by the Court.