EFY Technologies Vs ITO (ITAT Jaipur)
Income Tax Appellate Tribunal (ITAT) Jaipur has remanded the case of EFY Technologies against the Income Tax Officer for fresh adjudication. The appeal pertains to the assessment year 2017-18, where the Commissioner of Income Tax (Appeal) [CIT(A)] dismissed the appellant’s appeal under Section 250 of the Income Tax Act, citing non-compliance with Section 249(4)(b). The primary issue stemmed from an addition of Rs. 1,49,25,000 under Section 69A, as the assessee failed to file an income tax return and did not respond to assessment notices under Section 142(1). The assessee argued that no business activities were conducted during the relevant financial years, and the CIT(A) erred by rejecting additional evidence without proper consideration.
The ITAT observed that the assessee did not initially participate in assessment proceedings but was not denied a reasonable opportunity to present evidence. Given the circumstances, the tribunal found it appropriate to remand the matter to the Assessing Officer for fresh adjudication, ensuring due opportunity to the assessee. Additionally, the assessee has been directed to pay Rs. 6,000 towards the Prime Minister’s National Relief Fund before the reassessment proceedings begin.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
On 09.08.2024, Commissioner of Income Tax (Appeal) (in short ‘CIT(A)’) /NFAC, Delhi passed order u/s 250 of Income Tax Act, 1961 (in short ‘Act’), relating to the Assessment Year 2017-18 thereby dismissing the appeal filed by the assessee-appellant herein, while observing that appeal was not admissible.
