LKPS FOREX PRIVATE LIMITED,KOLKATA vs. ACIT, CENTRAL CIR 1(3), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH AT KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No(s). 1269/KOL/2026 Assessment Year(s) 2023-24 LKPS Forex Private Limited ACIT, Central Circle-1(3), Vs. Kolkata (Appellant) (Respondent) PAN: AADCL6146L Appearances: Assessee represented by : K.S. Roy, CA. Department represented by : Sanjit Kumar Das, CIT DR. Date of concluding the hearing : 14.07.2026 Date of pronouncing the order : 25.08.2026 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-20, Kolkata [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 2023-24 dated 13.03.2026. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1. Jurisdictional Defect - Void Assessment That the impugned order passed u/s 144 r.w.s. 145(3) is bad in law, void ab initio, and liable to be quashed as the Ld. AO proceeded on preconceived conclusions drawn from survey, without independent application of mind. 2. Violation of Natural Justice That the addition is liable to be deleted as it is based on third-party statements and replies u/s 133(6) without granting cross-examination, which is fatal in law.

“Conclusion 9.0 To summarise the entire scenario, it is safely concluded that the assessee engaged in the business of purchase and sale of forex deceitfully resorted to creation of fake air ticket on the basis of copy of passports and other credentials of certain individuals unscrupulously collected from various sources to apparently establish the sale of forex as genuine by demonstrating them as foreign bound passengers. They adhered to RBI guideline in terms of sale of forex in cash below Rs.50,000/- while the most important part of the

“5.0 Observation & Decision: 5.1 I have duly considered the facts of the case and submission of the appellant. The appellant has filed appeal in this case against the assessment order passed by the AO u/s 144 of the Act on 29.03.2025. The AO has made following 2 additions in the said assessment order. 1. Addition of Rs.90,84,45,712/- u/s 69A of the Act on account of introduction of cash from undisclosed sources in the guise of sale proceeds of FOREX. 2.Addition of Rs.20,000/- by rejecting the books of accounts showing loss of Rs. 18,181/-. 5.2 The appellant in its appeal has raised as many as 19 grounds of appeal against the addition made by the AO. Grounds of appeal No. 1 to 15 (except ground no. 3) are specific against the addition of Rs. 90,84,45,712/- u/s 69A of the Act. Whereas Grounds of appeal No. 3 is against the addition of Rs.20,000/- on account of rejecting the books of accounts showing loss of Rs. 18,181/-. Grounds of appeal No.18 is against the initiation of penalty proceeding u/s 271AAC of the Act and Grounds of appeal No. 19 is general in

Deputy/Assistant Registrar ITAT, Kolkata Benches Kolkata