Gudari Large Sized Multipurpose Cooperative Society Limited Vs Principal Chief Commissioner of Income Tax (Orissa High Court)
The Orissa High Court held that an appeal before the Income Tax Appellate Tribunal (ITAT) cannot be dismissed merely because the Authorised Representative (AR) appeared in improper dress during a virtual hearing. The Court observed that the Tribunal’s order was not passed on the merits of the case, but solely due to an alleged violation of the virtual hearing dress code prescribed under the SOP. Referring to Rule 24 of the Income Tax (Appellate Tribunal) Rules, 1963, the Court noted that where an appellant does not appear, the Tribunal is required to decide the appeal on merits and there is no provision permitting dismissal solely for improper attire of the AR. The Department also fairly conceded that no such rule authorizes dismissal on dress code grounds. Accordingly, the High Court set aside the Tribunal’s order, restored the appeal to its original file, and directed the Tribunal to dispose of the matter expeditiously on merits.
An issue came up before Hon’ble Chief Justice of Orissa High court when the assessee challenged an order of the Income Tax Appellate Tribunal (ITAT), Cuttack Bench which had dismissed the assessee’s appeal not on merits, but solely because the Authorised Representative (AR), appearing through virtual mode, was allegedly not dressed in accordance with the Standard Operating Procedure (SOP) prescribed for virtual hearings. The assessee approached the High Court under Article 226 of the Constitution challenging this dismissal.
