The Income Tax Department slapped a demand notice of 180.05 crore on Quess Corp Limited. The notice pertains to E-NXT, a company Quess Corp says ceased to exist in 2015. Quess Corp is challenging the notice, stating E-NXT merged with TBSS/Conneqt in 2014. TBSS/Conneqt has filed combined tax returns since 2015-16 and received no demands.
Quess Corp Limited has been issued a demand order totaling ₹180.05 Crores by the Income Tax Department, related to E-NXT’s failure to file Income Tax Returns.
The order was based on several grounds: (i) outstanding demands, (ii) penalty proceedings for not responding to notices, (iii) penalty proceedings for failing to complete the audit as required by the Income Tax Act, 1961, (iv) penalties under section 270A for underreporting income, (v) penalties for not maintaining adequate books of accounts, and (vi) a demand order issued under Section 147 of the Income Tax Act.
The company is currently preparing a response, emphasizing that E-NXT has not been a separate legal entity since 2015, making these orders invalid. Furthermore, the notices and orders are still addressed to “E-NXT Financials Limited” rather than directly to ‘TBSS/Conneqt’ or Quess Corp Limited, as stated in a recent filing with the exchange.
Quess Corp Limited has clarified that TBSS/Conneqt has submitted a consolidated Income Tax Return from Assessment Year (AY) 2015-16 onwards. This amalgamation was effective from April 1, 2014, as approved by the Bombay High Court, and for the said assessment year, the company received a ‘NIL’ demand.
The demand order was received by the company on November 4, 2024.