SHAMMI AGARWAL,NEW DELHI vs. D.C.I.T., CC - 1(4),, KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No 3025 & 3026/KOL/2025 Assessment Year: 2019-20 & 2023-24 Shammi Agarwal..............................................................................................Appellant 33/9 & 33/12, Main Bawana Road, Samaypur, BAdli, New Delhi, Delhi- 110042, [PAN No. AGWPA7175Q] Vs. D.C.I.T., CC-1(4),....…………..…………………....……….Respondent Aayakar Bhaban,Poorva, 110, Shantipally, E.M. Bypass, Kolkata- 700107 Appearances by: Miraj D. Shah, Adv., appeared on behalf of the Appellant. Dheeraj, JCIT, SR. DR, appeared on behalf of the Respondent. Date of concluding the hearing : June 15, 2026 Date of pronouncing the order : July 14 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: These are the appeals filed by the assessee is directed against the order dated 02.12.2025 of the National Faceless Appeal Centre (NFAC), passed under Section 147r.w.s144 and 143(3) of the Assessment Year 2019-20 & 2023-24 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

In both the cases issues are common and same, hence taken up together for disposal by taking ITA No. 3025/25 as a lead case. ITA No. 3025/25

ITA No.3025 & 3026/Kol/2025 Assessment Year- 2019-20 & 2023-24 Assessment Year 2019-20 declaring total income at Rs. 61,78,170/-, the return was processed at a total income of Rs. 62,80,970/-. It is observed from department I.T.B.A system that no regular assessment has been made in this case for the Assessment Year 2019-20. The assessee was engaged in manufacturing, packing and trading as proprietor of Pansari Industries and had earned interest income and income on investment in shares etc. during the year under consideration.A search and survey operation was conducted in the residential as well as business premises of Purti Groups of cases. The instant assessee was covered in the aforesaid search and seizure operation. A notice u/s 148 of the Act was issued as AO was deemed to have information that the income chargeable to tax in the case of the assessee had escaped assessment. In response the assessee filed his return of income declaring total income of Rs. 65, 50,040/-. During the course of search and operation conducted at the office premises of Purti Vanaspati Pvt. Ltd a bunch of loose sheets were found and on perusal of the said bunch of the loose sheets, it is noticed that it contains ledger of Dinesh Chachaji. It is observed that Pansari Industries has received huge amount of cash from Dinesh Chachaji. The ledger also contains substantial amount of cash payment to various entities which are not recorded in the books of account. The acknowledgement of cash payment by Pansari Industries to Dinesh Chachaji during the Assessment Year 2019-20 is about Rs. 1,12,81,670/- and assessee failed to explain the transaction. During the course of assessment proceedings, assessee was issued with a notice u/s 142(1) of the Act, in response, assessee submitted that all the documents were duly discussed in detail to the investigation team and further submitted that this document contains ledger of food grains trading which is not recorded in the books and he had offered to tax the profit element @ of 1.5% on the peak amount of Rs.

ITA No.3025 & 3026/Kol/2025 Assessment Year- 2019-20 & 2023-24 1,12,81,000/-. The Ld. AO did not find the submission satisfactory and considered the cash expenses of Rs. 1,12,81,670/- as an unexplained expenditure by virtue of provisions u/s 69C read with section 115BBE of the Act. Aggrieved by the said order assessee preferred appeal before the CIT(A) wherein appeal of the assessee has been partly allowed as the CIT(A) directed the AO to compute the gross-profit @ of 3% of the total debit transaction recorded of Rs. 1,12,81,670/- i.e. of Rs. 3,38,450/-. Being aggrieved by and dissatisfied the assessee preferred appeal before us. 3. The Ld. AR has challenged the very impugned order thereby submitting that Ld. CIT(A) erred an addition of Rs. 3,38,450/- on a estimate gross profit @ of 3% being arbitrary, contrary to that facts on record as the CIT(A) did not consider the submission of the assessee that he voluntary offered @ of 1.5% on the alleged turn over. The Ld. Submitted a summary of profit of Pansari Industries from financial year 2018-19 up to financial year 2023-24 financial year which is as below- *** Contrary to that Ld. DR supports the impugned order. 4. Upon hearing the submission of the counsel of the respective parties and on perusal of the impugned order, we find that the during the assessment proceeding the AO asked the assessee to explain the said transaction as found on page 45 to 49 of the said seized documents and in response the assessee submitted that the above documents and transaction pertaining to the instant assessment year contains ledger of food grain trading or related with agricultural products which were not recorded inthe books. Assessee has offered to tax the profit element @ of 1.5% on the peak amount of Rs.

ITA No.3025 & 3026/Kol/2025 Assessment Year- 2019-20 & 2023-24 1,12,81,000/-. The Ld. CIT(A) in its order directed the AO to compute the gross profit @ of 3% of the total debit transaction recorded of Rs. 112,81,670/-.We have considered the summary of the profit of Pansari Industries as filed by the assessee and after considering the submission we find substance in the arguments of the AR is that estimation on the gross-profit of each financial year should be restricted @ of 1.5% as offered by the assessee during the assessment proceedings. Accordingly, we direct the AO to compute the gross profit @ of 1.5% on the total gross profit of the assessee during the year under consideration. With this modification in the order, the appeal of the assessee is hereby partly allowed. AO is directed to compute the estimated profit @ of 1.5% for the financial year under consideration on the gross profit of the assessee. Both the appeal of the assessee is hereby partly allowed for statistical purpose. Kolkata, the 14th July , 2026.

Sd/- Sd/-

[Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated:. 14. 07.2026.

ITA No.3025 & 3026/Kol/2025 Assessment Year- 2019-20 & 2023-24

Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Assistant Registrar, Kolkata Benches

ITA No.3025 & 3026/Kol/2025 Assessment Year- 2019-20 & 2023-24