RUSHABH PRECISION BEARINGS, MUMBAI V. ACIT - 7(2), MUMBAI

MA 66/MUM/2023

AI Insights

Rushabh Precision Bearings Ltd. filed a Miscellaneous Application seeking the recall of an ex-parte order passed by the Tribunal in their earlier appeals for the assessment year 2003-04. The ex-parte decision was made because no representative appeared on behalf of the assessee during the scheduled hearing. The Managing Director of the company, in the application, explained that there was a misunderstanding with their appointed advocate, who failed to appear, leading to the ex-parte decision. The Tribunal considered the affidavit and the oral submissions made by the Managing Director, acknowledging the absence of malafide intent and granted the recall of the ex-parte order, setting a new date for the hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300135 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-03-2023
• Assessment Year: 2003-2004
• Appeal Filed On: 18-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH D. VORA CMD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER, AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER M.A. no.66/Mum./2023 IN ITA no.3270/Mum./2018 (Assessment Year : 2003–04) Rushabh Precision Bearings Ltd. Fida Mansion, 2 nd Floor 4, Babijan Street, Nagdevi Mumbai 400 002 PAN – AAACR5214N ................ Applicant (Original Appellant) v/s Asstt. Commissioner of Income Tax Circle–7(2), Mumbai ................Respondent (Original Respondent) Assessee by : Shri Rajesh D. Vora (CMD) Revenue by : Shri Soumendu Kumar Dash Date of Hearing – 31/03/2023 Date of Order – 24/04/2023 O R D E R PER SANDEEP SINGH KARHAIL, J.M. The present Miscellaneous Application has been filed by the assessee seeking recall of the ex–parte order dated 21/06/2022, passed under section 254(1) of the Income Tax Act, 1961 ("the Act") by the Co–ordinate Bench of the Tribunal in assessee’s appeals being ITAs no. 3270/Mum./2018, for the assessment year 2003–04. 2. During the hearing, the Managing Director of the assessee submitted that the assessee's appeal was decided ex-parte as none appeared on behalf Rushabh Precision Bearings Ltd. M.A. no.66/Mum./2023 Page | 2 of the assessee on the date fixed for the hearing. It was further submitted that the assessee was under a bonafide belief that the appointed Advocate would duly represent the matter before the Tribunal. However, on receipt of the order passed by the Tribunal on 05/08/2022, it was noticed that the appeal has been disposed off ex parte since no one was present on the date of the hearing. It was further submitted that non-appearance on the date of the hearing was not due to any malafide intention but for the aforesaid reasons. Accordingly, the Managing Director of the assessee prayed for recall of the ex- parte order passed by the Co-ordinate Bench of the Tribunal. The Managing Director also gave an oral undertaking of representation on behalf of the assessee as and when the appeal is listed for hearing. 3. On the other hand, the learned Departmental Representative vehemently opposed the prayer for recall of the order. 4. We have considered the rival submissions and perused the material available on record. It is the plea of the assessee that since the appointed Advocate of the assessee did not appear on the date of the hearing, therefore, there was no representation on behalf of the assessee before the Tribunal, when the appeal was heard. From the perusal of the record, we find that on the date of the hearing of the appeal, no one appeared on behalf of the assessee and accordingly, the Co–ordinate Bench of the Tribunal heard the appeal ex-parte qua the assessee and decided the same on the basis of submissions made by the learned Departmental Representative and the material available on record. By way of the present Miscellaneous Application, Rushabh Precision Bearings Ltd. M.A. no.66/Mum./2023 Page | 3 the assessee has sought recall of the aforesaid order dated 21/06/2022. The present Miscellaneous Application is also supported by an Affidavit of the Managing Director of the assessee. In view of the submissions made in the Affidavit supporting the present Miscellaneous Application, we are of the considered view that there was sufficient cause for non–appearance on behalf of the assessee when the appeal was called for hearing. Therefore, we deem it fit and appropriate to recall the aforesaid ex–parte order dated 21/06/2022, passed in assessee’s appeals being ITA no. 3270/Mum./2018, for a fresh hearing of the appeals on merits. Needless to mention that both parties shall be at liberty to raise any plea at the time of the hearing, including on the prayer for condonation of delay in filing the appeal. In view of the oral undertaking given by the Managing Director of the assessee that he or the Authorised Representative will be appearing in the appeal hearing, the appeal is fixed for hearing on 15/05/2023, i.e., the date convenient to both parties. Since the date of the hearing is pronounced in the open Court, the service of notice to the parties is hereby dispensed with. 5. In the result, the present Miscellaneous Application filed by the assessee is allowed. Order pronounced in the open Court on 24/04/2023 Sd/- B.R. BASKARAN ACCOUNTANT MEMBER Sd/- SANDEEP SINGH KARHAIL JUDICIAL MEMBER MUMBAI, DATED: 24/04/2023 Rushabh Precision Bearings Ltd. M.A. no.66/Mum./2023 Page | 4 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Assistant Registrar ITAT, Mumbai