ITAT restores appeal dismissed for want of prosecution despite 678 delays as same was due to Income Tax Practitioner’s Failure

Smt. Manjulaben C. Tomar Vs ITO (ITAT Ahmedabad)

The present application filed by the assessee seeks restoration of the appeal filed by the assessee in ITA No.956/Ahd/2012, pertaining to A.Y 2006-07 which was dismissed for want of prosecution vide order dated 27.03.2017.

We have noted that the said appeal was disposed off without dealing with the merits of the case and only for the reason that the assessee was not serious in pursuing the appeal which, it mentioned, was evident by the fact that it did not appear on various dates fixed for hearing.

Rule 24 of the Income Tax Appellate Tribunal Rules requires that where none appears for the assessee, the appeal is to be disposed of on merits after hearing the respondent and further after having done so, the assessee appears thereafter and satisfies the Tribunal that there was a reasonable cause for none appearance when the appeal was called for hearing then the Tribunal shall set aside the ex parte order and restore the appeal.

In the facts of the present case, the appeal which was disposed of ex parte was not in accordance with Rule 24 since it did not deal with the merits of the case. The Registry has marked the application filed by the assessee as delayed by 678 days on the basis of limitation prescribed u/s. 254(2) of the Income Tax Act which provides for rectifying any mistake in the order of the Tribunal and provides a time limit for doing so, which earlier was four years from the end of the month in which the order appealed against was passed, amended to six months w.e.f 01-06-2016.

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