What did the Tribunal hold?

The Tribunal held that the AO/CPC failed to issue any mandatory intimation or show cause notice to the assessee before making additions. Furthermore, the additions made were not within the scope of adjustments permissible under Section 143(1) of the Act.

The assessee's appeal challenged additions made by the AO/CPC under Section 143(1) of the Income-tax Act. These additions included VAT liability, gratuity fund contribution, brought forward losses, and depreciation. The assessee contended that no notice was issued and the additions were beyond the scope of prima facie adjustments.

What were the issues?

Whether additions made under Section 143(1) without issuing a notice and beyond the scope of permissible adjustments are valid.

Victrory Iron Works Ltd., Howrah vs Addl/JCIT, Central Range - 4 | ITAT Kolkata 2026

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri Saurabh Bagaria &

For Respondent: Shri S.B. Chakraborthy, DR

Hearing: 21.04.2026Pronounced: 20.05.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals)-27, Kolkata(hereinafter referred to as the “Ld. CIT(A)”] dated 27.09.2025 for the AY 2020-21.

The issue raised in ground no.1 is against the order of ld. CIT (A) confirming the disallowances as made by the ld. AO/ CPC in the order passed u/s 143(1) of the Income-tax Act, 1961 which is beyond scope of prima facie adjustments.

After hearing the rival contentions and perusing the materials available on record, we find that the ld. AO / CPC has not

“3. A perusal of the facts in the present case shows that the CPC has denied the exemption and brought to tax the receipts of the assessee as liable to tax. This is not permissible. If at all the CPC desires to deny the exemption, then the income of the assessee would have been considered as

In the result, the appeal of the assessee is allowed.

Order pronounced on 20.05.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 20.05.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

VICTRORY IRON WORKS LTD.,HOWRAH vs. ADDL/JCIT, CENTRAL RANGE - 4,, KOLKATA

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