Medway Educational Consultant Private Limited Vs AO (ITAT Delhi)
In the case of Medway Educational Consultant Private Limited Vs AO, the Income Tax Appellate Tribunal (ITAT), Delhi, restored the matter to the National Faceless Appeal Centre (NFAC) after observing that the appeal had been dismissed ex-parte without deciding the issues on merits.
The assessee company had filed its return of income for Assessment Year 2020-21 on 22-01-2021 declaring income of Rs.6,83,670. The case was selected for scrutiny because the net profit disclosed in the return was only 0.33%. Notice under Section 143(2) of the Income Tax Act was issued on 29-06-2021, followed by further statutory notices during assessment proceedings.
After considering the submissions furnished by the assessee, the Assessing Officer completed the assessment under Sections 143(3) read with 144B of the Act and made two additions. An addition of Rs.2,00,74,294 was made as unexplained expenditure under Section 69C of the Act, and another addition of Rs.35,00,000 was made as unexplained cash credit under Section 68 of the Act.
Aggrieved by the assessment order, the assessee filed an appeal before the NFAC. However, the NFAC dismissed the appeal vide order dated 31-12-2024 after noting that the assessee had not participated in the appellate proceedings despite opportunities being granted.
