IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH”, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER (Assessment Year 2015-2016)

Pramod Lakra, Deputy Commissioner of Income Tax, Aayakar Bhawan, 6th Floor, P-7, Chowringhee Square, Kolkata – 700069 ……..…...…………….... Appellant vs.

Urvashi Sarees Pvt. Ltd., 33, Tollygunge Circular Road, New Alipore, Kolkata - 700053 [PAN: AAACU5161F] ……..…...…………….... Respondent I.T.A. No. 1946/KOL/2024 (Assessment Year 2015-2016)

Urvashi Sarees Pvt. Ltd., 33, Tollygunge Circular Road, New Alipore, Kolkata - 700053 [PAN: AAACU5161F] ……..…...…………….... Appellant vs.

DCIT, Circle 11(1), Kolkata, Aayakar Bhawan, Kolkata - 700069 ................................. Respondent Appearances by:

Assessee represented by : Ramesh Patodia, Advocate Department represented by : Sanat Kumar Raha, CIT-DR S.B. Chakraborthy, Sr. DR Date of concluding the hearing : 22.07.2025 Date of pronouncing the order : 24.07.2025

O R D E R

PER SANJAY AWASTHI, ACCOUNTANT MEMBER

1.0 These are a batch of two appeals for the AY 2015-16, filed by both the Revenue [ITA 222/Kol/2025] and assessee [1946/Kol/2025] for settling their respective grievances. Both these appeals are against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2015-16, dated 20.8.2024, which has been passed against the assessment order u/s

147/144B of the Act, dated 29.05.2023.

1.1 The Revenue’s appeal is barred by limitation to the tune of 89 days, for which a petition for condonation has been filed as under:

It is respectfully submitted that the appeal could not be filed on or before due date due to an immense work load relating to assessment, penalties and writ petition filed by the various assessee in the Calcutta High Court against the order U/s 148A(d) and notice U/s148, as well as collecting and arranging the required documents/files for the 2nd appeal. Therefore, it is requested to kindly condone the delay of 101 days in filing appeal before the Hon'ble ITAT, Kolkata for the sake of substantial justice.”

1.2 Considering the contents of the said petition, the delay is hereby condoned and the Revenue’s appeal is also admitted for adjudication along with the assessee’s.

2. The assessee has raised the following grounds of appeal:

“I. FOR THAT in passing the impugned order dated August 20, 2024 the Learned Commissioner of Income Tax (Appeals) (hereinafter referred to as the "CIT (Appeals)") has acted by an outright refusal to consider relevant matters, has misdirected itself in points of law, has taken into account irrelevant considerations and has failed to take into account relevant materials on record. The said impugned order, to the extent the same has confirmed addition of Rs. 27,73,218/-under Section 69C of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), is arbitrary to that core and perverse.

II. FOR THAT on the facts and circumstances of the instant case the appellate order dated August 20, 2024 passed by the Learned CIT (Appeals), to the extent it restricts the addition of Rs. 27,73,218/- against the purported addition made by the Assessment Unit by its order dated May 29, 2023 under Section 147 read with Section 144B of the Act for the assessment year 2015-16, is arbitrary, unjustified, unwarranted and illegal.

III. FOR THAT the Learned CIT (Appeals) erred in upholding the assessment order passed by the Assessment Unit, National Faceless Assessment Centre (hereinafter referred to as the "Assessment Unit") to the extent of Rs. 27,73,218/-even though the mandatory notice required to be issued under Section 143(2) of the Act before passing the assessment order was not issued by the Assessment Unit which is impermissible in law as well as absolute disregard of the provisions of the Act and as such the impugned order as well as the purported assessment order is contrary to law, u