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“investigation wing”

ReassessmentSection 147Section 14712,584 judgments

The decision most relied on for investigation wing is PCIT v. RMG Polyvinyl (I) Ltd. (396 ITR 5), cited in 272 judgments on BharatTax.

Leading authorities on investigation wing

PCIT v. RMG Polyvinyl (I) Ltd.
396 ITR 5 · 2017 · High Court
272
citing judgments

Reassessment based solely on information from the Investigation Wing, without the Assessing Officer conducting further inquiry or demonstrating an independent application of mind, is unjustified and invalid.

109 TTJ 700 (Del) SMC Share Brokers Ltd. v. DCIT
293 ITR 43 · 2007 · High Court
264
citing judgments

Where an assessment order is merely a copy-paste of observations from an investigation wing's appraisal report without independent verification, it is not a valid basis for making additions to income.

Sarthak Securities Co. Pvt. Ltd. v. ITO
329 ITR 110 · 2010 · High Court
217
citing judgments

Reassessment proceedings under Section 147 are invalid if the Assessing Officer records satisfaction based on borrowed satisfaction or information without independently applying their mind and forming their own 'reason to believe' that income has escaped assessment. The AO must arrive at an independent conclusion, not merely act on a report from an investigation wing without due diligence.

ITO, 19(3) (4) Mumbai v. Shamim M Bharwani
69 Taxmann.com 65 · 2016 · Reported
142
citing judgments

Long Term Capital Gains (LTCG) from penny stock transactions are liable to be treated as bogus and added back under Section 68 as unexplained cash credits, especially when evidence suggests the involvement of entry operators providing accommodation entries.

1. Harikishan S. Virmani v. DCIT
394 ITR 146 · 2017 · High Court
97
citing judgments

Reassessment proceedings under section 147 cannot be initiated by the Assessing Officer based on borrowed satisfaction, vague information from the Investigation Wing, or incorrect jurisdictional facts without independent application of mind. Reopening beyond four years from the end of the relevant assessment year, especially where an original assessment was completed under section 143(3), requires specific conditions relating to the assessee's failure to disclose material facts.

ITO v. Purushottam Das Bangur
224 ITR 362 · 1997 · Supreme Court
90
citing judgments

Information received from the investigation wing constitutes valid 'reason to believe' for initiating reassessment proceedings under Sections 147/148, provided the Assessing Officer applies their mind to the material and does not act mechanically. Prompt issuance of a notice based on such information does not automatically imply a lack of due diligence or borrowed satisfaction.

AGR Investment v. Additional Commissioner
197 Taxmann 177 · 2011 · High Court
81
citing judgments

A reassessment under Section 147/148 is valid if initiated based on specific, non-vague information, even from an investigation wing, provided the Assessing Officer applies independent mind to form a 'reason to believe' that income has escaped assessment.

56 (Guj.) (para 6) v. Aaspas Multimedia Ltd. v. Dy. CIT
83 Taxmann.com 82 · 2017 · High Court
78
citing judgments

Information received from the Investigation Wing, identifying the assessee as a beneficiary of accommodation entries through share application from a third party, constitutes valid tangible material and 'reasons to believe' for initiating reassessment proceedings under Section 147 of the Income Tax Act.

Judgments citing investigation wing

Sushen Mohan Gupta, New Delhi vs. Assistant Commissioner of Income Tax, Central Circle- 15, Delhi

ITA 3001/DEL/2024[2013-14]Status: DisposedITAT Delhi20 May 2025AY 2013-14

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Debesh Panda, Special
Section 132(4)Section 153ASection 50Section 68

returned income of the appellant under section 68 of the Act based on the contents of the so-called pen-drive received by the Investigation Wing from the Enforcement Directorate. 3. That the Ld. CIT (A) has erred in law by falling to appreciate that the case of the appellant ... unless and until incriminating evidence are found during the course of search and also that armed with a pendrive, the Investigation Wing went against the taxpayer's charter and Form 45 itself which mandates that nothing can be carried by the Investigation Wing from their office in respect of documents

Sushen Mohan Gupta, New Delhi vs. Assistant Commissioner of Income Tax, Central Circle- 15, Delhi

ITA 3000/DEL/2024[2012-13]Status: DisposedITAT Delhi20 May 2025AY 2012-13

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Debesh Panda, Special
Section 132(4)Section 153ASection 50Section 68

returned income of the appellant under section 68 of the Act based on the contents of the so-called pen-drive received by the Investigation Wing from the Enforcement Directorate. 3. That the Ld. CIT (A) has erred in law by falling to appreciate that the case of the appellant ... unless and until incriminating evidence are found during the course of search and also that armed with a pendrive, the Investigation Wing went against the taxpayer's charter and Form 45 itself which mandates that nothing can be carried by the Investigation Wing from their office in respect of documents

Sushen Mohan Gupta, New Delhi vs. Assistant Commissioner of Income Tax, Central Circle -15, Delhi

ITA 2999/DEL/2024[2011-12]Status: DisposedITAT Delhi20 May 2025AY 2011-12

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Wadhwa, AdvFor Respondent: Shri Debesh Panda, Special counsel for the Department
Section 132(4)Section 153ASection 50Section 68

returned income of the appellant under section 68 of the Act based on the contents of the so-called pen-drive received by the Investigation Wing from the Enforcement Directorate. 3. That the Ld. CIT (A) has erred in law by falling to appreciate that the case of the appellant ... unless and until incriminating evidence are found during the course of search and also that armed with a pendrive, the Investigation Wing went against the taxpayer's charter and Form 45 itself which mandates that nothing can be carried by the Investigation Wing from their office in respect of documents

Rose Serviced Apartments (India) Pvt. Ltd, New Delhi vs. ACIT, Circle-21(2), New Delhi

In the result, the appeal of assessee is partly allowed as above

ITA 4041/DEL/2019[2015-16]Status: DisposedITAT Delhi20 May 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 115BSection 68

Plastic Industries Ltd.  Action by SEBI against penny stock companies  Investigation report unearthing modus operandi in such cases.  Same modus operandi as detected by investigation wing found to be followed in the case of M/s Jolly Plastic Industries Ltd. 3 Rose Serviced Apartments (India) P. Ltd.  The assessee traded only ... Jolly Plastic Industries Ltd., the AO concluded that the modus operandi adopted by the assessee followed the same pattern discovered by the Investigation wing during various search and survey operations wherein similar method adopted by the operators/brokers for providing bogus LTCG/business losses had been adopted. The trading income of Rs.5

Vdr Consultants Pvt. Ltd., Kolkata vs. ITO, Ward 11(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 338/KOL/2025[2015-16]Status: DisposedITAT Kolkata19 May 2025AY 2015-16

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Ito, Ward 11(1) Vdr Consultants Pvt. Ltd. Kolkata 401, Ashok Road, Near Kings Aaykar Bhavan, P-7, Bakery, Ganguly Bagan, Vs. Chowringhee Square, Kolkata-700084, West Bengal Kolkata-700069 West Bengal (Appellant) (Respondent) Pan No. Aaacv8920H Assessee By : Shri Devesh Poddar, Ar Revenue By : Ms. Ranu Biswas, Dr Date Of Hearing: 13.05.2025 Date Of Pronouncement : 19.05.2025

For Appellant: Shri Devesh Poddar, ARFor Respondent: Ms. Ranu Biswas, DR
Section 143(1)Section 147Section 148

which was processed u/s 143(1) of the Act. Thereafter, the ld. AO received VDR Consultants Pvt. Ltd.; A.Y. 2015-16 information from the investigation wing vide letter dated 07.01.2019, that assessee is a beneficiary of accommodation entries and accordingly, the case of the assessee was reopened

ACIT 19(3), Mumbai vs. S V Exports, Mumbai

In the result, appeals of the revenue as well as the cross objections of the assessee are dismissed

ITA 692/MUM/2025[2010-11]Status: DisposedITAT Mumbai19 May 2025AY 2010-11

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 147Section 148Section 68

from the five parties. Ld. AO in the entire assessment orders has discussed finding and the report of the investigation wing. 5. In response, to the show cause notice, assessee furnished the following details with regard to all the parties through whom it has taken loan to prove identity, creditworthiness ... audited financial statement of the lender parties have been examined by the ld. AO. His entire case hinges upon the report of the investigation wing and the information received from investigation wing. These reports and information could be the triggering point to reopen the case or take

ACIT 19(3), Mumbai vs. S V Exports, Mumbai

In the result, appeals of the revenue as well as the cross objections of the assessee are dismissed

ITA 691/MUM/2025[2009-10]Status: DisposedITAT Mumbai19 May 2025AY 2009-10

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 147Section 148Section 68

from the five parties. Ld. AO in the entire assessment orders has discussed finding and the report of the investigation wing. 5. In response, to the show cause notice, assessee furnished the following details with regard to all the parties through whom it has taken loan to prove identity, creditworthiness ... audited financial statement of the lender parties have been examined by the ld. AO. His entire case hinges upon the report of the investigation wing and the information received from investigation wing. These reports and information could be the triggering point to reopen the case or take

ACIT 19(3), Mumbai vs. S V Exports, Mumbai

In the result, appeals of the revenue as well as the cross objections of the assessee are dismissed

ITA 689/MUM/2025[2007-08]Status: DisposedITAT Mumbai19 May 2025AY 2007-08

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 147Section 148Section 68

from the five parties. Ld. AO in the entire assessment orders has discussed finding and the report of the investigation wing. 5. In response, to the show cause notice, assessee furnished the following details with regard to all the parties through whom it has taken loan to prove identity, creditworthiness ... audited financial statement of the lender parties have been examined by the ld. AO. His entire case hinges upon the report of the investigation wing and the information received from investigation wing. These reports and information could be the triggering point to reopen the case or take

Income Tax Officer Ward 24(2)(1), Mumbai, Piramal Chambers, Lalbaug vs. Homewell Realty LLP, Andheri, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 1684/MUM/2025[2017-18]Status: DisposedITAT Mumbai19 May 2025AY 2017-18

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Satish Mody, ARFor Respondent: Shri Hemanshu Joshi (Sr. DR)
Section 143(1)Section 144BSection 147Section 148Section 148ASection 151Section 68

income of Nil and the same was processed u/s 143(1) of the Act. Later, certain information was received by the AO from the Investigation wing of the Department whereby it was noticed that that the assessee was one of the beneficiaries of the bogus loan entries provided

Deputy Commissioner of Income, Circle-1(3)(1), Mumbai vs. Vikas Deep Sales Private Limited, Mumbai

In the result, appeal of the revenue is dismissed

ITA 5869/MUM/2024[2012-13]Status: DisposedITAT Mumbai19 May 2025AY 2012-13

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 133(6)Section 142(1)Section 143(3)Section 68

Audited Financial Statements for FY 2011-12 4. Ld. AO without examining these details or creditworthiness has simply relied upon the report of the investigation wing. The relevant observations of the ld. AO reproduced as under: - “7.2 In its submission dated 20.12.2019, the assessee furnished the copy of Company Master ... relevant findings in the impugned order. It is seen that entire premise of the ld. AO is based on the report of the investigating wing and he himself did not carried out any further enquiry. Once the assessee has filed all the details of the lender companies and that they

Varshaben Laherikant Bhadra, Mumbai vs. ITO 25(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 1665/MUM/2024[2011-12]Status: DisposedITAT Mumbai19 May 2025AY 2011-12

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 10(38)Section 133(6)Section 143(3)Section 147Section 148Section 68

accordingly notice u/s. 148 of the Act was issued on 09.10.2016. Ld. AO in his assessment order has mostly reproduced the findings of the investigation wing and the general modus operandi adopted by the entry providers. Assessee had purchased 2500 shares of M/s. Splash Media (name changed to Luharuka Media ... adverse information or material against exit providers who has bought the shares online from BSE. Thereafter he has highlighted the observations of the Investigation Wing and treated the entire amount received through sale of shares of Rs. 1,00,99,878/-as bogus and added the same

ITO Ward - 28(4), New Delhi vs. Renu Gupta, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 5155/DEL/2019[2015-16]Status: DisposedITAT Delhi19 May 2025AY 2015-16

Bench: Shri Vikas Awasthy& Shri Avdhesh Kumar Mishraआअसं.5155/िद"ी/2019 (िन.व. 2015-16) Income Tax Officer, Ward 28(4), R. No. 1211, E-2 Block, 12Th Floor, ...... अपीलाथ"/Appellant Civic Center, Jln Marg, Delhi 110002 बनाम Vs. Renu Gupta, R/O. B-393, New Friends Colony, New Delhi 110025 ....."ितवादी/Respondent Pan: Afupg-6910-N Assessee By : Shri Sanjeev Kapoor, Chartered Accountant Department By : Ms. Harpreet Kaur Hansra, Sr. Dr सुनवाई क" ितिथ/ Date Of Hearing : 19.02.2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 19.05.2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Revenueis Directed Against The Order Of Commissioner Of Income Tax (Appeals)-10, New Delhi (Hereinafter Referred To As 'The Cit(A)') Dated 05.03.2019, For Assessment Year 2015-16. 2. The Revenue In Appeal Has Assailed The Order Of Cit(A) In Deleting Addition Of Rs.1,30,83,424/-Made By Assessing Officer (Ao) Disallowing Assessee’S Claim Of Exemption Of Long Term Capital Gains (Ltcg) U/S. 10(38) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’).

For Appellant: Shri Sanjeev Kapoor, Chartered AccountantFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 10(38)Section 143(3)

sale of said shares and claimed the same as exempt u/s. 10(38) of the Act. The AO on the basis of report of Investigation Wing held that Eins Eductech Ltd. is one of the declared penny stocks and the Long Term Capital Gain/Short Term Capital Loss on sale

Vertool Consultancy LLP, Ahmedabad vs. The Dy. CIT, Circle-2(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1131/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad16 May 2025AY 2017-18

Bench: Dr. B.R.R. Kumar, Vice-Ms. Suchitra Kamble

For Appellant: Shri Aseem L Thakkar, ARFor Respondent: Shri B.P Srivastava, Sr DR
Section 132Section 139(9)Section 143(2)Section 143(3)Section 147Section 148Section 153CSection 69A

case of the assessee, as per the letter of the Assessing Officer dated 08.02.2022, read as under: “… on perusal of information so received from Investigation Wing, Ahmedabad, it is noticed that the assessee Vertool Consultancy LLP (AANFV1223F) is one of the beneficiaries who has availed/obtained accommodation entries to the tune

Assistant Commissioner of Income Tax, Panve vs. Rajendra Madhukar Joshi, Kamothe

In the result, appeal of the Revenue is dismissed

ITA 210/PUN/2025[2018]Status: DisposedITAT Pune16 May 2025

Bench: Dr.Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Ganesh B. BudrukFor Respondent: Shri Sandeep Sachdeva and Shri Damodar Vaidya
Section 143(3)Section 37Section 68

available on the said address. During this remand report the JAO could have verified. There is no material on record such as investigation wing report or information from any other investigating agency such as from GST department etc, which indicates that that the payments made to both the aforesaid

Assisstant Commisioner of Income Tax, Chennai vs. Estra Enterprises Private Limited, Chennai

ITA 1653/CHNY/2024[2014-15]Status: DisposedITAT Chennai16 May 2025AY 2014-15
For Appellant: Mr. S.Senthil Kumaran, CITFor Respondent: Mr.R.Sivaraman, Advocate
Section 143(3)Section 147Section 148Section 45(2)Section 53A

Officer or was brought to his knowledge by any other agency such as GST, ED or even other branch of Income Tax Department, namely Investigation Wing. However, it is seen that the reasons for reopening are regarding on observation about Note Number 24 to annual accounts, Assessee has converted land

ACIT-23(1), Mumbai, Piramal Chamber, Parel vs. Chetan Pravin Chitalia, Mumbai

In the result, appeal of the revenue is dismissed

ITA 2101/MUM/2025[2010]Status: DisposedITAT Mumbai16 May 2025

Bench: Shri Saktijit Dey, Vice- & Shri Bijayananda Pruseth

Section 271(1)(c)Section 690

penalty levied of Rs.3,91,799/- being @12.5% on alleged bogus purchases, by ignoring the fact that the Maharashtra Sales Tax Department thru DGIT(Investigation Wing), Mumbai has proved beyond doubt that M/s. Reliance Steel Traders and M/s. CR Enterprises, were paper companies, controlled and operated by various hawala traders ... addition. The ITAT, Mumbai in case of Mun Gems (supra) has held that where AO treated entire purchase as bogus based on findings of investigation wing and levied penalty u/s 271(1)(c) of the Act, since payment for purchases had been made through account payee cheques and there were

ACIT-23(1), Mumbai, Piramal Chamber vs. Chetan Pravin Chitalia, Mumbai

In the result, appeal of the revenue is dismissed

ITA 2100/MUM/2025[2009]Status: DisposedITAT Mumbai16 May 2025

Bench: Shri Saktijit Dey, Vice- & Shri Bijayananda Pruseth

Section 271(1)(c)Section 690

penalty levied of Rs.3,91,799/- being @12.5% on alleged bogus purchases, by ignoring the fact that the Maharashtra Sales Tax Department thru DGIT(Investigation Wing). Mumbai has proved beyond doubt that M/s. Reliance Steel Traders and M/s. CR Enterprises, were paper companies, controlled and operated by various hawala traders ... addition. The ITAT, Mumbai in case of Mun Gems (supra) has held that where AO treated entire purchase as bogus based on findings of investigation wing and levied penalty u/s 271(1)(c) of the Act, since payment for purchases had been made through account payee cheques and there were

Sunil Nagesh Shet, Thane West vs. Income Tax Officer, Ward 3(5), Thane

In the result, the appeal filed by the assessee is allowed

ITA 4547/MUM/2023[2011-2012]Status: DisposedITAT Mumbai16 May 2025AY 2011-2012

Bench: Shri Pawan Singh&Girish Agrawal(Physical Hearing) Sunil Nageshshet Ito,Ward-3(5), Thane 1/18, Vinayak Bhavan Kolbad Road, Vs B-Wing, 6Th Floor, Near Pratap Cinema Thane (W), Ashar It Park, Road No. 16Z, Maharashtra-400601. Wagle Estate, Thane-West, [Pan No. Aegps 2748 B] Maharashtra-400604. Appellant / Assessee Respondent / Revenue

Section 132Section 143Section 143(2)Section 148Section 254(1)

Assessing Officer's own satisfaction is negated by the Assessing Officer in his detailed order wherein based on the information received from the Investigation Wing of the department. The Assessing Officer has corroborated the said information with other evidences which includes documentary evidence and the statement recorded under section

ITO, Ghaziabad vs. Nupur Garg, Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 2116/DEL/2024[2013-14]Status: DisposedITAT Delhi16 May 2025AY 2013-14

Bench: Shri Mahavir Singh & Shri M. Balaganesh

For Appellant: Shri Saif Ali, AdvFor Respondent: Shri Amit Katoch, Sr. DR
Section 10(38)Section 139(1)Section 144BSection 147Section 148Section 69A

International Limited during the year under consideration, which was considered to be a penny stock by the Income Tax Department. Based on the Investigation Wing report, the Learned AO proceeded to issue notice under section 148 of the Act on 31-03-2021. In response to the notice under section ... stock exchange which was solely to provide accommodation entries to the various parties; and lastly, he has also referred to certain inquiry report of Investigation Wing Kolkata during the course of which certain brokers have admitted that they had provided accommodation entries in the scrip of M/s. CCL International

DCIT, Central Circle-28, New Delhi vs. Manish Uppal, Delhi

In the result, assessee’s appeal in ITA No

ITA 3061/DEL/2022[2013-14]Status: DisposedITAT Delhi16 May 2025AY 2013-14

Bench: Ms. Madhumita Roy & Shri Naveen Chandraassessment Year: 2013-14

Section 132(1)Section 143(1)Section 147Section 148Section 153ASection 68

nothing but the change of opinion of the Assessing Officer. AO did not independently verified/examined the transactions reported to be accommodation entry by the Investigation Wing, Kolkata and proceeded solely on the basis of their report, therefore, the reassessment suffers from the lacunae of "borrowed satisfaction". 9.1 The Assessing Officer ... noted that the information was received from DDIT, Investigation Wing Unit 4(1), Kolkata vide F.NO.DDIT/U- 4(1)/TruthfulDevcon/S-15/Kol/2018-19/11139, dated 02.03.2019 that the appellant received credits from M/s Truthful DevconPvt. Ltd. It was further noted by him that the bank account of M/s Truthful DevconPvt. Ltd. was credited through