R.K.Manufacturing Co. Ltd., Jamnagar V. I.T.O.,Ward-4(1), Kolkata

MA 56/KOL/2022

AI Insights

The case involves R.K. Manufacturing Co. Limited, which filed a Miscellaneous Application under section 254(2) read with Rule 24 of the Income Tax Appellate Tribunal Rules, seeking to set aside an ex-parte order dismissing their appeal. The Tribunal had previously dismissed the appeal due to the non-appearance of the assessee, as no representative attended the hearing. The assessee explained that they had relocated from Kolkata to Jamnagar and had updated their address with the Income Tax Officer, but this change was not communicated to the Tribunal, leading to their absence at the hearing. The Tribunal found the explanation reasonable and decided to recall the ex-parte order and restore the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129854 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-03-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 15-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 254(2)

Judgement Text

M.A. No. 56/KOL/2022 (n ITA No. 119/KOL/2020) Assessment Year : 2009-2010 R.K. Manufacturing Co. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member M.A. No. 56/KOL/2022 (in I.T.A. No. 119/KOL/2020) Assessment Year: 2009-2010 R.K. Manufacturing Co. Limited,................Applicant 215A, Manek Centre, P.N. Marg, Jamnagar-361008 [PAN: AABCR5644R] -Vs.- Income Tax Officer,...............................Respondent Circle-4(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri N.S. Saini, A.R., appeared on behalf of the assessee N o n e, appeared on behalf of the Revenue Date of concluding the hearing : March 17, 2023 Date of pronouncing the order: March 20, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present Miscellaneous Application is directed at the instance of assessee under section 254(2) read with Rule 24 of the Income Tax Appellate Tribunal Rules. 2. In this application, the assessee has pleaded that appeal of the assessee bearing ITA No. 119/KOL/2020 was dismissed by M.A. No. 56/KOL/2022 (n ITA No. 119/KOL/2020) Assessment Year : 2009-2010 R.K. Manufacturing Co. Limited 2 the Tribunal vide its order dated 29 th June, 2022 ex-parte. The Tribunal has observed that inspite of notices no one has come present on behalf of the assessee. 3. In paragraph no. 3 of the application, the assessee has demonstrated its non-appearance, which reads as under:- “3. In this regards, the applicant most respectfully begs to submit that the applicant has requested to Income Tax Officer, Ward-1(3), Jamnagar to transfer the case to Jamnagar as the company has shifted from Kolkata (West Bengal) to Jamnagar (Gujarat) since 2016 and necessary changes in PAN record were also made by the applicant. Further, since the applicant has shifted from Kolkata to Jamnagar, it had no knowledge about the fixation of hearings, the appeal remained unattended on the date of hearings and appeal was dismissed ex-parte”. 4. No one has appeared on behalf of the Revenue in response to the notice of this application. The Bench Clerk has specifically informed the ld. D.R. Office and submitted that file has been allocated to the Authorized Officer but somehow no one has come present. 5. The Rule 24 of the ITAT Rules, 1963 has a direct bearing on the controversy, which reads as under:- “24. Hearing of appeal ex parte for default by the appellant.- Where, on the day fixed for hearing or on 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 M.A. No. 56/KOL/2022 (n ITA No. 119/KOL/2020) Assessment Year : 2009-2010 R.K. Manufacturing Co. Limited 3 hearing, the Tribunal may dispose of the appeal on merits after hearing the respondent; 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.” 6. A perusal of the above Rule would indicate that it authorizes the Bench to decide an appeal ex-parte but the proviso appended to the Rule contemplates that in case, a party satisfies the Tribunal for its non-appearance and Tribunal considers such explanation as a reasonable cause for non-appearance of the party then, the ex-parte order would be recalled and appeal is to be decided on merit after providing due opportunity of hearing, since the assessee has transferred its business from Kolkata to Jamnagar and given its latest address in the Cause Title in the M.A., which reads as under:- “M/s. R.K. Manufacturing Co. Ltd., 215-A, Manek Centre, P.N. Marg, Jamnagar-361008” 7. According to the assessee, it has already intimated this change to the Income Tax Officer, Ward-1(3), Jamnagar and necessary changes in the PAN data has already taken effect and only lapse at the end of the assessee was that this information was not transmitted to the Tribunal. The erstwhile Tax Consultant in Kolkata did not informed the assessee about the M.A. No. 56/KOL/2022 (n ITA No. 119/KOL/2020) Assessment Year : 2009-2010 R.K. Manufacturing Co. Limited 4 notice of hearing and, therefore, no one could appear before the Tribunal. 8. Considering the above explanation, we re-call our order dated 29 th June, 2022 and restore the appeal to its original number. The Registry is directed to list the appeal for hearing on 16 th May, 2023 and A due notice be given to the Department. There is no need to serve notice upon the assessee because this order has been pronounced in the open Court, in the presence of ld. Counsel for the applicant. 9. In the result, the Miscellaneous Application of the assessee is allowed. Order pronounced in the open Court on March 20, 2023. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President(KZ) Kolkata, the 20 th day of March, 2023 Copies to : (1) R.K. Manufacturing Co. Limited, 215A, Manek Centre, P.N. Marg, Jamnagar-361008 (2) Income Tax Officer, Circle-4(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 M.A. No. 56/KOL/2022 (n ITA No. 119/KOL/2020) Assessment Year : 2009-2010 R.K. Manufacturing Co. Limited 5 (3) Commissioner of Income Tax (Appeals)-2, Kolkata; (4) Commissioner of Income Tax- , (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.