IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER (Assessment Year 2016-2017)

Deputy Commissioner of Income Tax, Central Circle-3(3), Kolkata, Aayakar Bhawan Poorva, 5^th Floor, 110 Shantipally, Kolkata – 700107 ……..…...…………….... Appellant vs.

Kaushalya Nirman Private Limited, 69 Girish Park, North Kolkata - 700006 [PAN: AHJPM1335Q] ................................ Respondent Appearances by:

Assessee represented by : Abhishek Bansal, A.R.

Department represented by : Dheeraj, Addl. CIT, Sr. DR Date of concluding the hearing : 24.06.2025 Date of pronouncing the order : 30.06.2025

O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER

1. In this case there is a delay of 75 days in the filing of the present appeal by the Revenue. The Revenue has filed the following application for condoning of the said delay:

“In the instant case order u/s 250 of the Income Tax Act, 1961 vide appeal no. CIT (A), Kolkata-21/10426/2018-19 dated 27.12.2023 was received in the Pr. CIT's office on 04.01.2024 and limitation of filing appeal was expired on 04.03.2024.

That on 12.01.2024 the ASR was submitted before the Addl. CIT, Central Range-3, Kolkata for perusal and onwards transmission to the Ld. Pr. CIT, Central-2. Kolkata. Subsequently, on 07.05.2024 the Ld. Pr. CIT accorded approval for filing appeal before the Hon'ble ITAT, Kolkata.

After receiving the approval, the following documents have been prepared (three copies each) for filing the appeal before the Hon'ble ITAT, Kolkata.

1) Form No. 36

2) Grounds of Appeal before the tribunal

3) Certified Copy of CIT(Appeal) order

4) Certified Copy of Form No. 35 along with Grounds of Appeal & Statements of facts

5) Certified copy of relevant assessment order

6) Certificate of the Commissioner (certified Copy)

Further, the relevant documents, have been scanned and finally uploaded in the ITAT online portal for e-filing of appeal.

Your petitioner states that there is a delay of 65 days in filing the instant appeal. Your petitioner states that if the delay of 65 days is not condoned the revenue shall suffer loss.

Leave may please be given to file the Appeal by condoning the delay.

1.1 Considering the reasons given in the said application, the delay is hereby condoned and the appeal is admitted for adjudication.

2. This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by Ld. Commissioner of Income Tax (Appeals), Kolkata – 21, vide order dated 27.12.2023.

2.1 In this case, the main issues involve an addition of Rs. 4,22,38,464/- on account of share premium receipt. This addition has been deleted by the Ld. CIT(A) based on appreciation of certain new documents, not before the Ld. AO, as has been alleged by the Revenue. Needless to say, the addition was deleted by the Ld. CIT(A).

2.2 Aggrieved with this action, the Revenue is in appeal with the following grounds:

“1. The Ld.CIT(A) has erred on facts and in law by deleting the addition of Rs. 4,22,38,464/ on account of receipt of share premium under section 56(2)(vib) of the Act on the basis of fresh documents submitted by the assessee.

2. The Ld. CIT(A) has erred on facts and in law by deleting the addition made by the A.O. based on the documents submitted by the assessee without giving an opportunity to the AO to examine the same, in contravention of Rule 46A of the Income Tax Rules, 1962 ?

3. The Ld. CIT(A) has erred on facts and in law by not addressing the factual position of outstanding demands towards Income Tax orders in the case of the assessee as on 13.12.2018 which were misrepresented by the assessee before the Ld.CIT(A).

4. The department craves the right to add, alter, amend or withdraw any ground of appeal before or at the time of hearing.

3. Before us, the Ld. DR argued that the assessee had not made much of a compliance before the Ld. AO in terms of submitting the documents to prove the bonafides of the impugned transaction. The Ld. DR pointed out para 1.1 on