INTERNATIONAL RURAL EDUCATIONAL & CULTURAL ASSOCIATION, NARMADA V. ITO, WARD-1, BHARUCH

MA 46/SRT/2022

AI Insights

The case involves the International Rural Educational & Cultural Association (the assessee) appealing against an ex parte order of the Income Tax Appellate Tribunal, which had dismissed their appeals for the Assessment Years 2010-11 and 2011-12 due to non-appearance. The assessee's representative failed to attend the scheduled hearing on 18/08/2022 due to a funeral, which was not communicated to the Tribunal in advance. The assessee filed Miscellaneous Applications seeking rectification of the Tribunal's order, arguing that the non-appearance was due to a bonafide reason and not intentional. The Tribunal, considering the circumstances and the rules, decided to recall the earlier order and scheduled a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302205 (ITAT-SURAT)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-02-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 18-09-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER M.A. No. 46 & 47/Srt/2022 (Arising out of ITA No. 564 & 565/Srt/2019) (Assessment Year: 2010-11 & 2011-12) (Physical hearing) International Rural Educational & Cultural Association, Inreca Complex, Rajpipla Road, District Narmada-393040. PAN No. AAATI 3801 R Vs. I.T.O., Ward-1, Bharuch. Appellant/ assessee Respondent/ revenue Appellant represented by Shri Vipul Khandhar, CA Respondent represented by Shri Vinod Kumar, Sr.DR Date of hearing 03/02/2022 Date of pronouncement 03/02/2023 Order under section 254(2) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two Miscellaneous Applications (MA) are filed by the assessee for seeking rectification/recalling of common order of this Tribunal dated 18/08/2022 passed in ITA No. 564 & 565/Srt/2019 for the Assessment Year (AY) 2010-11 and 2011- 12 respectively. 2. The learned Authorised representative (ld.AR) of the assessee submits that the date of hearing in both the appeals was fixed on 18/08/2022 and he could not appear nor could make application for adjournment in appeals as he has to attend some social engagement. The ld. AR submits that he has to attend a funeral of his relative on 18/08/2022, so neither he could appear in MA No.46 & 47/SRT/2022 International Rural Educational & Cultural Association Vs ITO 2 virtual hearing nor could file application for adjournment. The ld. AR of the assessee submits that the assessee has good case on merit and will suffer irreparable loss or injury if order dated 18/08/2022 is not recalled. The ld. AR of the assessee submits that his non-appearance on 18/08/2022 is neither intentional nor deliberate but due to reasons beyond his control. The ld. AR submits that the Bench has dismissed the appeal by considering the material on record. In fact, the Tribunal has passed ex parte order for default of the assessee. The ld. AR for the assessee submits that his non-appearance on 18/08/2022 was due to bonafide reason and is sufficient cause for non-appearance as per Rule 24 of Income Tax (Appellate Tribunal) Rules, 1963. The ld. AR of the assessee submits that in future he will be vigilant in attending the hearing and will not make any default. The ld. AR submits that he undertook to file all the necessary documents on record and to conclude his argument on a single date, if the order is recalled and the assessee is given opportunity of merit. 3. On the other hand, the ld. Senior Departmental Representative (ld. Sr. DR) for the Revenue submits that in the application under Section 254(2), the assessee has merely mentioned that he could not appear due to some social engagement. Such social engagement, now argued before the Bench, was not disclosed in the MA. The ld. Sr. DR for the revenue submits that the Bench MA No.46 & 47/SRT/2022 International Rural Educational & Cultural Association Vs ITO 3 has given sufficient opportunity to the assessee. The appeal was filed in 2019 and till the hearing of appeal, in absence of assessee, not a single document was filed by assessee. The assessee was not serious in pursing his case. The Bench has passed the order on the basis of material available on record. There is no mistake in the order which may be classified as mistake apparent on record. In case, the order is recalled, it would be a precedent. The ld. Sr. DR for revenue prayed for dismissal of both the Misc. applications of the assessee. 4. We have considered the rival submissions of both the parties and perused the order dated 18/08/2022. We find that on 18/08/2022, neither the ld. AR of the assessee appeared nor filed any application for adjournment, therefore, we decided to adjudicate the appeal after hearing the submissions of the ld Sr DR for the revenue and on the basis of material available on record. Since, the assessee has not filed any evidence nor any submission, therefore, on the basis of material, we do not find any reasons to give any relief to the assessee, thereby dismissing the both the appeals of the assessee. Now in the application, the assessee has come with the plea that there is sufficient reasons for non-appearance on behalf of assessee, as the assessee has engaged his authorised representative, who all of an sudden has to attend a funeral/cremation of some of his relatives on MA No.46 & 47/SRT/2022 International Rural Educational & Cultural Association Vs ITO 4 18/08/2022. Considering the overall facts and circumstances of the case of non-appearance on the date when the appeal was heard ex parte, we find that the ld. AR of the assessee has shown sufficient cause as per Rule 24 of Income tax (Appellate Tribunal) Rules, therefore, the order dated 18/08/2022 is recalled. Since the order dated 18/08/2022 is recalled, the appeal is fixed for hearing on 06/03/2023 in virtual hearing. The date of hearing was fixed with the consent of both the parties, therefore, issuance of fresh notice for hearing is dispensed with. The ld. AR of the assessee is directed to file paper book/documents one week before the date of hearing, if so desired, after supplying the same to the office of Departmental Representative. With this observation, both the Misc. applications of the assessee are allowed. 5. In the result, both these Misc. Applications of the assessee are allowed Order was announced on 3 rd February, 2023 at the time of hearing in physical court hearing. (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 03/02/2023 *Ranjan Copy to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By order 6. Guard File Sr. Pvt. Secretary, ITAT, Surat