2014 (5) TMI 770 - AT - Income Tax

Recall of order u/s 254(1) of the Act No communication for adjournment Held that - There was no communication of the date of hearing, even as the Bench had explicitly directed the Registry for informing the parties while granting adjournment for the said date on 14.01.2013 there was sufficient reason for the non-appearance by or on the assessee s behalf on the date of hearing, and not a lack of earnestness in pursuing its appeal, as inferred by the tribunal while dismissing the assessee s appeal thus, it would be justifiable to recall the order for being heard afresh by the tribunal Decided in favour of Assessee.

Summary

Issues:
1. Non-appearance of the assessee during the appeal hearing.
2. Lack of communication regarding the hearing date.
3. Justifiability of recalling the order for a fresh hearing.
4. Directions regarding communication of hearing dates by the tribunal.

Analysis:
1. The appeal was dismissed due to the non-prosecution by the assessee during the hearing. The assessee later filed a Miscellaneous Petition stating reasons for non-attendance, citing lack of communication about the hearing date. The assessee claimed that the adjournment granted earlier was not communicated to them, leading to their absence. The tribunal considered the reasons provided and found them valid, attributing the non-appearance to genuine reasons such as ill-health and lack of communication, rather than lack of earnestness in pursuing the appeal.

2. Upon reviewing the material on record, the tribunal noted the explicit direction given to the Registry to inform the parties about the adjournment granted on a specific date. However, the communication regarding the new date was not conveyed to the assessee, leading to their non-appearance. The tribunal acknowledged the lapse in communication and deemed it a valid reason for the non-attendance, thereby justifying the decision to recall the order for a fresh hearing.

3. The tribunal, after hearing both parties, decided to recall the order and set a new date for the hearing in consultation with the parties. It was specified that no separate communication would be sent regarding the new date, and the Registry was directed to display the fresh dates on the notice board and upload them regularly on the portal to prevent inconvenience and unnecessary workload. This decision aimed to ensure transparency and avoid similar communication lapses in the future.

4. Consequently, the tribunal allowed the assessee's miscellaneous application, emphasizing the importance of effective communication and proper notification of hearing dates to facilitate fair proceedings. The order was pronounced openly on May 9, 2014, reflecting the tribunal's commitment to upholding procedural fairness and ensuring that parties are duly informed and given the opportunity to present their case.