1980 TAX. L. R. 136 ::(1979) 12 CurTaxRep 303 ::(1979) 120 ITR 231 ::(1979) 180 ITR 231 ::(1980) 1 I T J 57 ::(1979) Ker LT 708 ::(1979) 2 Taxman 337 (Ker)

Kerala High Court

Hon'ble Judge(s): G. Viswanatha Iyer, K. Bhaskaran , JJ

Income-tax Act (1961) , S.254(I)— Power to set aside ex parte order and restore appeal for rehearing is inherent in Appellate Tribunal. (Income-tax (Appellate Tribunal) Rules (1963), , R. 25)— The power to set aside ex parte order, in the interest of justice is inherent in the Tribunal and can be traced to subsection (i) of Section 254 of the Act. Giving a reasonable opportunity of being heard, as stated in sub-section (i) of Section 254 of the Act, is essentially part of the jurisdiction of the Tribunal, and when the Tribunal is satisfied that the ex parte order happened to be passed was without giving a reasonable opportunity of being heard to the aggrieved party, it has the jurisdiction to set aside that order and to proceed to pass a fresh order after hearing both sides as enjoined in that provision.(Para 5) The power under sub-section (i) of Section 254 of the Act should be deemed to be comprehensive enough to enable the Appellate Tribunal to set aside the ex parte order in case it is satisfied that though there was notice to the respondent, in spite of the exercise of due diligence, the reasonable opportunity of being heard could not be availed of by him, though by the provisions of the Act or the Rules such power has not been expressly conferred on it.(Para 6) Merely for the ....