2017 (7) TMI 1441 - HC - Income Tax

Tribunal dismissing the appeal as unadmitted - Dismissal of appeal for appellant’s default etc. - Scope of Rule 24 after amendment - Whether ITAT seriously erred in passing the impugned order rejecting the application for recalling the said order and to hear and decide the appeal on merits filed under Rule 24 of Income Tax (Appellate Tribunal) Rules, 1963 by wrongly applying provisions of Section 254(2) of Income Tax Act, 1961? - HELD THAT:- Taking into consideration the language of the Rule 24 after amendment, it is clear that tribunal could not have dismissed the appeal for default and ought to have decided the same on merits.

We are of the opinion that tribunal is misconceived on the issue raised by the appellant as the application was filed for recalling the order and not for rectification. In that view of the matter, the first issue we have decided in favour of the assessee. The tribunal ought to have reconsidered Rule 24 after amendment and having failed to do so, both the orders are quashed and set aside. The tribunal will decide the merit afresh.