ITAT Kolkata Remands ₹92.67 Crore Addition in Addhya Forex Case, Cites Lack of Proper Hearing

April 6, 2026 : The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has set aside reassessment proceedings against Addhya Forex (P) Ltd., holding that additions aggregating to ₹92.67 crore were made through effectively ex parte orders without granting the assessee a meaningful opportunity of being heard.

The Tribunal, comprising Judicial Member George Mathan and Accountant Member Rakesh Mishra, remanded the matter to the Assessing Officer for fresh adjudication in accordance with law, directing that adequate opportunity be provided to the assessee.

Addhya Forex (P) Ltd., a Reserve Bank of India-licensed full-fledged money changer engaged in foreign exchange transactions, had filed its return for Assessment Year 2016–17 declaring an income of ₹2.40 lakh. The case was originally assessed under Section 143(3), but was later reopened under Section 147 following a survey and scrutiny of bank transactions.

During reassessment, the Assessing Officer sought explanations for substantial credit entries in multiple bank accounts. Due to non-compliance, credits amounting to ₹92.67 crore across Axis Bank and ICICI Bank accounts were treated as unexplained money under Section 69A. Consequently, total income was assessed at ₹92.70 crore.

The Commissioner of Income Tax (Appeals) upheld the addition, observing that despite several opportunities, the assessee failed to furnish any explanation or supporting documents either before the Assessing Officer or during appellate proceedings.

Before the Tribunal, the assessee submitted that the non-compliance resulted from miscommunication with its tax consultant, leading to absence of proper representation at both stages. It sought another opportunity to substantiate the source of bank credits.

Accepting the plea, the Tribunal noted that both the assessment order and the appellate order were passed ex parte due to lack of compliance. Emphasising principles of natural justice and fair play, it held that the assessee should be given a fresh opportunity to present its case.

Accordingly, the Tribunal set aside the order of the CIT(A) and remitted the matter to the Assessing Officer for de novo reassessment. It also directed the assessee to cooperate in the proceedings and avoid unnecessary adjournments. The appeal was partly allowed for statistical purposes.

Case Title: Addhya Forex (P) Ltd. v. ITO, Ward-8(1), Kolkata
Case No.: ITA No. 215/KOL/2025 (AY 2016–17)