Indo Colchem Pvt. Ltd., Ahmedabad V. The Asstt. Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

MA 6/AHD/2023

AI Insights

Indo Colchem Limited filed a Miscellaneous Application to recall an exparte order passed by the Income Tax Appellate Tribunal. The application was necessitated by the non-appearance of the assessee's representative during a scheduled hearing due to medical treatment. The Tribunal considered the circumstances, including the late submission of an adjournment letter due to miscommunication, and the medical emergency of the representative. After reviewing the submitted evidence and considering the provisions of Rule 24 of the Income Tax Appellate Tribunal Rules, the Tribunal decided to recall the exparte order and grant a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114297 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-03-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 12-01-2023
• Laws Referred To: Income Tax Appellate Tribunal Rules
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Indo Colchem Limited 36/2, GIDC, Phase-II, Vatva, Ahmedabad-382445 PAN: AAACI4393K (Appellant) Vs The Asstt. Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad (Respondent) Assessee Represented: Shri Nitin Mehta & Shri Kishan Mehta, C.A. Revenue Represented: Shri Mukesh Jain, Sr. D.R. Date of hearing : 03-03-2023 Date of pronouncement : 12-05-2023 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This Miscellaneous Application is filed by the Assessee to recall the exparte order dated 21.10.2022 passed by the Tribunal. 2. At the outset, the assessee apologies for not represent for the hearing of the appeal on 02.08.2022. During that period, the Authorized Representative Shri Kishan M Mehta was on Ayurvedic Medical Treatment to Visakhapatnam. Though an Adjournment Letter dated 30.07.2022, but e-mailed on 02.08.2022 at 12:36 hrs. M.A. No. 6/Ahd/2023 (in ITA No. 2310/Ahd/2018) Assessment Year 2010-11 M.A. No. 6/Ahd/2023 A.Y. 2010-11 Page No Indo Colchem Ltd. vs. ACIT 2 because of the miscommunication by the office staff of the Chartered Accountant. Even on merits, the assessee has a better case. Therefore requested to recall the exparte order dated 21.10.2022 and give an opportunity to the assessee for argue the case on merits. 3. Ld. Counsel Shri Nitin Mehta along with Shri Kishan Mehta submitted before us a Paper Book as well as the Adjournment Letter dated 30.07.2022 e-mail on 02.08.2022 at 12:36 hrs. The Ld. Counsel further submitted the Air ticket dated 31.07.2022 to Visakhapatnam and return ticket on 08.08.2022 is produced before us in the Paper Book. The Ld. Counsel also relied upon various case laws to recall the exparte order as well as on merits of the case, and thereby requested to recall the exparte order. 4. The Ld. Sr. D.R. Shri Mukesh Jain appearing for the Revenue strongly objected to the recalling of the order, since the final order was passed being the 19 th hearing of the case, wherein in the previous hearings also, none appeared on behalf of the assessee. Therefore the Miscellaneous Application is liable to be dismissed. 5. We have given our thoughtful consideration and perused the materials available on record. It is an admitted case that on medical grounds, the Ld. Counsel could not appear before the Tribunal on 02.08.2022. However the so called Adjournment Letter dated 31.07.2022 was sent by e-mail on 02.08.2022 at 12:36 hrs., that is after conclusion of the hearing of the above appeal by the Bench. Thus the assessee has demonstrated before us a genuine M.A. No. 6/Ahd/2023 A.Y. 2010-11 Page No Indo Colchem Ltd. vs. ACIT 3 and reasonable cause on medical grounds for not appearing before the Bench on 02.08.2022. 5.1. It is appropriate to quote Rule 24 of the Income Tax Appellate Tribunal Rules, which reads as follows: “...24. 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 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.” 5.1. An exparte order passed by the Tribunal is to be recalled and heard afresh in case, an assessee is able to adduce sufficient and reasonable cause for non-attending and non-prosecution of its appeal. In this case, the assessee already proved the medical emergency and late filing of the adjournment letter. In our considered opinion, the above order is to be recalled and fresh hearing is to be accorded as per Rule 24 of the Income Tax Appellate Tribunal Rules. Thus the exparte order dated 21.10.2022 is hereby recalled and the case is to be fixed for hearing on 20.06.2023, notice be served on the both sides and the appeal is to be argued on merits without seeking further adjournment. M.A. No. 6/Ahd/2023 A.Y. 2010-11 Page No Indo Colchem Ltd. vs. ACIT 4 6. In the result, the Miscellaneous Application filed by the Assessee is allowed. Order pronounced in the open court on 12-05-2023 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 12/05/2023 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद