ARVEE ELECTRICALS & ENGINEERING P LTD.,PUNE V. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -1(1), PUNE

MA 67/PUN/2024

AI Insights

The case revolves around the assessee, Arvee Electricals & Engineers Pvt. Ltd., seeking to recall an ex-parte order passed by the Income Tax Appellate Tribunal in a previous Miscellaneous Application (MA No. 124/PUN/2023). The assessee contended that they did not receive any notice for the hearings, which led to their non-appearance and the subsequent ex-parte decision. The Tribunal acknowledged the violation of the principle of natural justice due to the non-receipt of notice and the absence of an opportunity for the assessee to represent their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47137 (ITAT-PUNE)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P. MURKUNDE
• Assessee Lawyers: PRAMOD SHINGTE
• Keywords: Principle of natural justice

Judgement Text

" आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER धिधिि आिेदन सं. / MA No.67/PUN/2024 (Arising out of ITA No.24/PUN/2023) धनिाारण िर्ा / Assessment Year : 2018-19 Arvee Electricals & Engineers Pvt. Ltd., Plot No. 2, S. No. 127 Vidya Bank, Bld. Aundh, Pune-411007 PAN : AABCA5809R Vs. Dy. Commissioner of Income Tax, Circle – 1(1), Pune अपीलार्थी / Appellant प्रत्यर्थी / Respondent Assessee by : Shri Pramod Shingte Department by : Shri Ramnath P. Murkunde Date of hearing : 10-01-2025 Date of Pronouncement : 11-04-2025 आदेश / ORDER PER ASTHA CHANDRA, JM : By this Miscellaneous Application the assessee seeks to recall the ex- parte order of the Tribunal in Miscellaneous Application No. 124/PUN/2023 dated 23.05.2023 filed by the assessee in the order passed by the Tribunal in ITA No. 24/PUN/2023 dated 02.03.2023 pertaining to Assessment Year (“AY”) 2018-19. 2. The Miscellaneous Application filed by the assessee states the following facts and contentions raised therein : “Miscellaneous Application (MA) under MA No. 124/PUN/2023, is filed by appellant on 23/05/2023, (copy enclosed as annexure I), against the order passed in case of ITA No. 24/PUN/2023 Dated 02/03/2023 (copy enclosed as Annexure II). From the order sheets available on ITAT portal It is observed that said MA was listed for hearing on 05/04/2024, further on perusal of the order sheet it appears that said hearing was adjourned on 03/05/2024, and since again the bench did not function on the said date, finally it was heard on 07/06/2024, wherein, Hon'ble Bench has dismissed the said MA by passing an ex-parte order. It is your appellant's contention that your appellant has not received any notice of all above referred hearings (an affidavit confirming non-receipt of 2 MA No. 67/PUN/2024, AY 2018-19 notices is enclosed as Annexure III), due to this reason neither assessee nor his authorized representative could attend the hearing on the said date. In this regard it is your appellant's humble submission that since the appellant did not get any opportunity to represent appeal in MA No. 124/PUN/2023, principle of natural justice is being violated, therefore, your appellant most humbly prays before Hon'ble Bench to recall the above referred MA order and grant us an opportunity of hearing and oblige.” 3. Reiterating the contentions raised in the Miscellaneous Application reproduced above, the Ld. AR submitted that the MA No. 124/PUN/2023 in ITA No. 24/PUN/2023 filed by the assessee was listed for hearing on 05.04.2024 and 03.05.2024, however, the hearing did not take place as the Bench did not function on the said date(s). Thereafter, the matter was listed for hearing on 07.06.2024 on which dated the matter was taken up for hearing by the Bench ex-parte as non-appeared on behalf of the assessee. The Ld. AR submitted that the non-appearance on the scheduled date before the Tribunal was due to the reason that the assessee did not receive any notice(s) of hearing. An affidavit confirming the non- receipt of notice(s) was placed on record. He further submitted that the Co-ordinate Bench of the Tribunal decided the appeal of the assessee in ITA No. 24/PUN/2023 vide its order dated 02.03.2023 dismissing the appeal of the assessee by passing an ex-parte order. Since both the assessee’s Miscellaneous Application (MA No. 124/PUN/2023) as well as the appeal in ITA No. 24/PUN/2023 were decided by the Tribunal ex-parte qua the assessee, the assessee did not get any opportunity to represent its case properly before the Tribunal. The Ld. AR therefore prayed to recall the Miscellaneous Application order dated 07.06.2024 in MA No. 124/PUN/2023 passed by the Tribunal. 4. The Ld. DR opposed the present Miscellaneous Application contending that the assessee is not entitled to file Miscellaneous Application in Miscellaneous Application under law and therefore the above prayer of the assessee shall be rejected. 5. We have heard the Ld. Representatives of the parties and perused the material available on record as well as both the present and earlier Miscellaneous Application filed by the assessee and the order of the Tribunal passed in ITA No. 124/PUN/2023. We notice that the main appeal of the assessee in ITA No. 24/PUN/2023 has been decided by the Tribunal by passing an ex-parte order dated 02.03.2023 after hearing the Ld. DR and perusing the material available on record as non-appeared 3 MA No. 67/PUN/2024, AY 2018-19 before the Tribunal on behalf of the assessee on the scheduled date of hearing. Perusal of the order sheet in ITA No. 24/PUN/2023 reveals that the matter was listed on the scheduled date of hearing being 01.03.2023 for the first time. Similar to this, it is also noticed that the earlier Miscellaneous Application filed by the assessee being MA No. 124/PUN/2023 to recall the said order of the Tribunal in ITA No. 24/PUN/2023 was also decided ex-parte by the Tribunal as non-appeared on behalf of the assessee on the scheduled date of hearing i.e. 07.06.2024. It is apparent from the order sheet that on earlier two occasions i.e. 05.04.2024 and 03.05.2024 when the said Miscellaneous Application of the assessee was listed for hearing, the Bench did not function and the matter was adjourned to 07.06.2024 thereby effectively making it to be the first date of hearing. However, the assessee failed to appear on the said date. The assessee has filed an affidavit stating therein that the assessee did not receive any notice of hearing due to which neither the assessee nor his authorized representative could attend the hearing on the scheduled date. 6. We are conscious that it is a debatable issue whether there can be a Miscellaneous Application against the Miscellaneous Application. However, in the present peculiar facts and circumstances of the case enumerated above, we observe that the assessee was not given adequate opportunity to represent and substantiate its case before the Tribunal when the earlier Miscellaneous Application being MA No. 124/PUN/2023 was called for hearing on 07.06.2023. The assessee failed to appear on the said date for the reason that no notice of hearing was served on the assessee. The MA No. 124/PUN/2023 has been decided ex-parte by the Tribunal vide order dated 07.06.2024 which in our considered view is against the norms of principle of natural justice. The assessee cannot be expected to appear when the notice of hearing was never served on the assessee. There is no contrary material brought on record before us to negate the claim of the assessee and/or the affidavit in support thereof filed by the assessee. Even the main appeal in ITA No. 24/PUN/2023 was decided ex-parte by the Tribunal. Rule 24 of the Income Tax Appellate Tribunal Rule, 1963 provides that “where on the day fixed for hearing or any other date to which the hearing may be adjourned, the appellant does not appear in person or through an authorised representative when the appeal is called on for hearing, the Tribunal may dispose of the appeal on merits after hearing the respondent: 4 MA No. 67/PUN/2024, AY 2018-19 Provided that where an appeal has been disposed of as provided above and the appellant appears afterwards and satisfies the Tribunal that there was sufficient cause for his non-appearance when the appeal was called on for hearing, the Tribunal shall make an order setting aside the ex- parte order and restoring the appeal”. The assessee has filed the instant Miscellaneous Application giving the reasons as to why the assessee could not participate in earlier proceedings on the scheduled date(s) which in our considered view constitutes a reasonable and sufficient cause for the assessee’s non-appearance. Considering the totality of the facts and in the circumstances of the case enumerated above, we deem it fit in the interest of justice and fair play, to recall the order passed by the Tribunal in Miscellaneous Application being MA No. 124/PUN/2023 dated 23.05.2023 and direct the Registry to fix the said Miscellaneous Application for hearing in due course. The Registry is also directed to inform both the parties by issuing a fresh notice for hearing. 7. In the result, the Miscellaneous Application No. 67/PUN/2024 filed by the assessee is allowed. Order pronounced in the open court on 11th April, 2025. Sd/- Sd/- (Manish Borad) (Astha Chandra) ACCOUNTNAT MEMBER JUDICIAL MEMBER पुणे / Pune; दिन ांक / Dated : 11th April, 2025. रदि आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. //सत्य दपि प्रदि// True Copy// आिेश नुस र / BY ORDER, िररष्ठ दनजी सदचि / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune "