Non-Appearance of Assessee during Hearing can’t be a Reason to Recall Tribunal Order: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Bangalore bench has held that the Tribunal cannot recall an order by invoking Rule 25 of the Appellate Tribunal Rules, 1963 merely on ground of non-appearance of the assessee during hearing of appeal.

The Tribunal comprising Shri George George K., Judicial Member and Shri B.R. Baskaran, Accountant Member was considering a miscellaneous application filed by the assessee, M/s. Stella Maris Church Malpe to recall of order of the Tribunal dated 29.12.2021.

The assessee climed that the date of hearing of the appeal i.e. 23.12.2021 was announced on the earlier occasion on 6.11.2021. On that day, the counsel of the assessee Smt. K. Soumya, Advocate has taken note of the date of hearing and hence there was no necessity to send notice of hearing to the assessee. However, the assessee or its counsel did not appear on the date of hearing on 23.12.2021 and hence, the Tribunal proceeded to pass the order exparte, without presence of the assessee.

The Tribunal observed that in the reason cited above, the assessee has stated that it did not receive notice of hearing and hence it could not be represented on the date of hearing.

“Since the date of hearing was taken note of by representative of the assessee, there was no necessity for the Tribunal to send the notice of hearing. It was also mentioned that the advocate was ill on that day. However, no material to support the above said contentions was filed. Thus, we notice that the reasons cited by the assessee for non-appearance on the date of hearing is vague and it cannot be considered to be sufficient cause for not appearing on the date of hearing,” the Tribunal said.

Rule 25 of the Appellate Tribunal Rules, 1963 empowers the Tribunal to recall the order passed in the absence of respondent, if the respondent satisfies the Tribunal subsequently that there was “sufficient cause” for his non appearance when the appeal was called on for hearing.

Dismissing the application, the Tribunal held that “In our considered view, the reasons furnished by the assessee for non-appearance cannot be considered as sufficient cause. Accordingly, we are of the view that the petition filed by the assessee deserves to be rejected. Accordingly, we reject the miscellaneous application filed by the assessee.”

To Read the full text of the Order CLICK HERE

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