RITU AGARWAL,SILIGURI vs. I.T.O., WARD - 1(2), SILIGURI

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ITA 495/KOL/2026Status: HeardITAT Kolkata21 August 2026AY 2019-20206 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the order passed by the lower authorities was bad in law. This was based on the fact that for the preceding assessment year (2018-19), the AO had dropped proceedings on similar facts and evidence.

What were the facts?

The assessee, an individual dealing in waste paper, filed her return of income. The Assessing Officer (AO) received information about alleged bogus purchases and initiated reassessment proceedings. An addition of Rs. 33,68,890/- was made on account of unexplained expenditure.

What were the issues?

Whether the addition made on account of unexplained expenditure is justified when similar proceedings for a prior year were dropped on identical facts and evidence. Whether the AO made the addition without disposing of the assessee's objections to the notice.

Which sections of the Income-tax Act were involved?

Section 147,Section 148A,Section 148,Section 144B,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No 495/KOL/2026 Assessment Year- 2019-20 Ritu Agarwal………………………………………..............................................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata, West Bengal- 700069 [PAN No. AGGPA1080L] Vs. I.T.O Ward- 1(2)...........................................................……………....……….Respondent Aayakar Bhawan, Matigara, Siliguri, West Bengal- 734004 Appearances by: Siddharth Agrawal, Adv.,appeared on behalf of the Appellant. Praveen Das Chowdhury, (Sr. D.R), appeared on behalf of the Respondent. Date of concluding the hearing : July 16, 2026 Date of pronouncing theorder : August 21 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 20.01.2026 of the Income Tax Department, passed under Section 147 of the Assessment Year 2019-20 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The brief facts of the case of the assessee thatthe appellant is an individual dealing in 'waste paper and supplies to paper manufacturing during the year in the name and style of M/s. Umang Enterprise. For the assessment year 2019-20, originally, she had filed her Return of Income (Rol) on 22.10.2019

ITA No.495/Kol/2026 Assessment Year- 2019-20 declaring Total Income of Rs. 25,26,090/-. Subsequently, the AO received the information emanating from Investigation Wing, Kolkata that this Appellant had availed accommodation entry of bogus purchase amounting to Rs. 33,68,890/-from a 'Rajshree Vanijya Udyog (PAN: AAVFR3583L) hence the AO undertook the enquiry as per Section 148A and order u/s. 148A(d) was passed on 06.04.2023 and finally resorted to reopening and a notice u/s 148 was issued on 06.04.2023. In response, Rol was filed on 17.05.2023 declaring income at Rs. 25,26,090/- i.e. same is the income disclosed in the original Rol. The re-assessment proceedings finally concluded with passage of an order u/s 147 r.w.s. 144B on 07.01.2025 where addition of Rs.33,68,890/- was made on account of unexplained expenditure u/s 69C.

Aggrieved by the said order assessee preferred appeal before the CIT(A) wherein appeal of the assessee has been dismissed.

3.

The ld. AR challenges the very impugned order thereby submitting that during the assessment year the assessee purchase waste paper amounting to Rs. 33,68,890/- from Rajshree Vanijya Udyog which is duly recorded in the books of account of the assessee. The assessee made payment for her said purchase through banking channels and goods were transported to Siliguri through transport on the strength of Waybill drawn from GST Portal. The Ld. AR further submits that during the assessment year 2018-19 on the same fact and 2

ITA No.495/Kol/2026 Assessment Year- 2019-20 evidences concerning the same party a proceeding was initiated u/s 148A against the assessee which was dropped on the same set of the documents/ evidences. The Ld. AR brought the following documents before us:-

a. Annexure-1-Order U/s 1484(d) for asstt. Yr. 2018-19 b. Annexure-IV. Comparable Statement between Asstt. Yr 2018-19 & 2019-20 c. Annexure-IIA- Relavant Purchase Bills of RVU. Transport Consignment Notes. Waybill drawn from GST Portal for Asstt. Yr. 2018-19. d. Annexure-IIB-Purchase Statement of RVU for Asstt. Yr. 2018-19. e Annexure-IIC-Sale Ledger for Asstt. Yr. 2018-19. f Annexure-IID-GSTR 2A for Asstt. Yr. 2018-19. Annexure-IIIA-PNB Ledger for payment to RVU for Asstt. Yr. 2019-20. h. Annexure-IIIB-Relevant PNB Statement for payment to RVU through Bank for Asstt. Yr. 2019-20. Annexure-IIIC- Statement of Purchase from RVU for Asstt. Yr. 2019-20. j. Annexure-IID- Purchase bills of RVU, Transport Consignment Notes, Waybill drawn from GST Portal for Asstt. Yr. 2019-20. k. Annexure-IIIE- Audit Report for Asstt. Yr. 2019-20. 1. Annexure-IIIF-GSTR 24 for Asstt. Yr. 2019-20. m. Annexure-IIIG-Sale Ledger for Asstt. Yr. 2019-20. 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 assessee has assailed the quantum addition of Rs. 33,68,89/- made to the dual income of the assessee. AO in receipt of the specific information supplied by the investigation wing 3

ITA No.495/Kol/2026 Assessment Year- 2019-20 Kolkata that the assessee had availed accommodation entries of books purchase to the tune of Rs. 33,68,890/- from Rajshree Vanijya Udyog, Kolkata. We further find that the assessee has furnished purchase bills of the Rajshree Vanijya Udyog, Kolkata in short RVU, transport consignment notice, we deal drawn from GST portal, purchase statement of RVU, sell ledgers with payment for RVU etc. 5. It is pertinent to mention here that assessee has also brought an order passed u/s 148A of the IT Act for the assessment year 2018-19 and going over the said order we find that on the same facts, evidences, Assessing Officers dropped the case of the assessee and held that it is not a fit case to issue notice u/s 148 of the Act. In the present case ,facts of the case are similar to the facts passed in the assessment year 2018-19 in which proceeding has been dropped. Evidences are the same and submission are also the same. It is further important to mention here that during the assessment proceedings, the assessee has objected for issuance of notice u/s 148 on 10.06.2024 but without disposing the objection, the Ld. AO made an addition. 6. Keeping in view the documentary evidences submitted by the assessee and considering the order passed by the AO for the assessment year 2018-19 against the same assessee, we do not have any hesitation to hold that order

ITA No.495/Kol/2026 Assessment Year- 2019-20 passed by the lower authority in the present case is bad in law. Accordingly, the order passed by the lower authorities are hereby set aside. In the result the appeal of the assessee is hereby allowed.

Kolkata, the 21st August , 2026.

Sd/- Sd/-

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

DC Dated: 21 .08.2026.

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

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

ITA No.495/Kol/2026 Assessment Year- 2019-20

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