“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

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

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

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

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

Saurabh Sumant Patwa, Ahmedabad vs. The PCIT-3, Ahmedabad

ITA 509/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad30 Sept 2024AY 2015-16

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokar

For Appellant: Shri Biren Shah &For Respondent: Shri Prithviraj Meena, CIT-DR

Section 144BSection 147Section 148Section 263

Kalhaar Blues and Greens" (KBG) Project developed by Navratna Organizers and Developers Pvt. Ltd. (NODPL). This information was based on a report from the Investigation Wing which indicated that, during a search operation on NODPL, the builder admitted to receiving "on-money" in cash payments for the sale of villas ... Ld.PCIT observed that the AO has not made any enquiry or conscious efforts to examine the facts reported by the Investigation Wing. Therefore, he issued the show cause notice to the assessee u/s.263 of the Act for both the assessment years. 2.6. In reply to the notices u/s.263

M/S. Stone Metals Pvt. Ltd., Kolkata vs. I.T.O., Ward - 3(3), Kolkata

In the result, appeal of the assessee is allowed

ITA 1499/KOL/2024[2011-2012]Status: DisposedITAT Kolkata30 Sept 2024AY 2011-2012

Bench: hearing of the appeal.”

Section 143(3)Section 144Section 147Section 148Section 250

facts of the case are that the assessee filed its return of income on 30.09.2012. Subsequently, on the basis of information received from the Investigation Wing of the Income Tax Department, proceeding u/s 147 of the Act were initiated and notice u/s 148 of the Act was issued ... time of hearing, the Ld. Counsel for the assessee submitted that the reassessment proceedings were based on solely on the information from the Investigation Wing, without any independent application of mind by the AO. It was contended that the amount of Rs. 4 lacs allegedly received by the assessee

Brijendra Garg, Bhiwadi vs. ITO Ward Bhiwadi, Bhiwadi

In the result, the appeal filed by the assessee stands partly allowed with no order is to cost

ITA 103/JPR/2023[2011-12]Status: DisposedITAT Jaipur30 Sept 2024AY 2011-12

Bench: Hon’ble SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Rohan Sogani, CAFor Respondent: Shri Gautam Singh Choudhary,JCIT-DR

Section 143(3)Section 147

incurring a loss of Rs. 42,097 During the course of the assessment proceedings, the Id. AO, based on information received from the Investigation Wing, concluded that the assessee had earned a gain of Rs 2,75,650 on the sale of shares of DMC Education Ltd. (AO Order Page ... disregarded the submissions, citing that the assessee had provided details pertaining to M/s DMC Vaults Ltd., while the information received from the Investigation Wing referred to M/s DMC Education Ltd. It is pertinent to note that the company in which the assessee traded during the relevant year had undergone

Amish Manubhai Brahmbhatt, Ahmedabad vs. The Income Tax Officer, Ward-5(2)(2), Ahmedabad

In the result, the appeal filed by the Assessee is hereby allowed

ITA 932/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad27 Sept 2024AY 2012-13

Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 132(4)Section 139(1)Section 143(3)Section 147Section 68

assessee had filed the return of income for the A.Y.2012-13 on 31/08/2012 declaring total income at Rs.3,62,340/-. The information received from the Investigation wing categorically stated that Shri Naresh Jain, has admitted on oath in his statement recorded u/s.132(4) that with the help of 3 I.T.A

Rajesh Amarsinh Prajapati, Ahmedabad vs. ITO, Ward-3(2)(4), Ahmedabad

In the result, appeal of the assessee is dismissed

ITA 94/AHD/2019[2010-11]Status: DisposedITAT Ahmedabad27 Sept 2024AY 2010-11

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: NoneFor Respondent: Shri Ankit Jain, Sr. DR

Section 1Section 120(3)(a)Section 142Section 142(1)Section 143(1)Section 143(2)Section 147Section 148Section 274

Amarsinh Prajapati vs. ITO Asst.Year –2010-11 - 4– Profit & Loss Account and Balance Sheet etc. which were earlier produced by the assessee before the Investigation Wing and what was now produced by the assessee before the Assessing Officer. The Assessing Officer observed that in the cash book produced earlier before ... Investigation Wing, there was no opening cash balance. However, the assessee is showing opening cash balance of Rs.4,50,000/- as on 01.04.2009. Further, in the cash book produced earlier before the Investigation Wing, the assessee has shown cash receipts from various parties, in support of which, the assessee filed

Assistant Commissioner of Income Tax, Central Circle, Kota vs. Sh. Naval Kishore, Kota

In the result appeal filed by the assessee stands allowed and that of the revenue stands dismissed

ITA 456/JPR/2024[2015-16]Status: DisposedITAT Jaipur27 Sept 2024AY 2015-16

Section 139Section 143Section 153A

during the search and retraction during assessment proceedings. By admitting the appellant during search and survey proceedings the assessee stopped further investigation by the investigation wing. The assessee prevented department to cause further enquiry in his case. Since, the appellant admitted that unaccounted profit was earned and the department officers

Sanjaykumar Hirachand Jain, Mumbai vs. ITO-19(3)(2), Mumbai

Appeals are dismissed, accordingly

ITA 3479/MUM/2024[AY 2011-12]Status: DisposedITAT Mumbai27 Sept 2024

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sunil Kumar Singh, Hon’Ble

For Appellant: Mr. Mahaveer JainFor Respondent: Smt. R. M. Brindha, Addl. JCIT

3479/Mum/2024 2 3. The briefly stated the facts of the case are that on the basis of the information received from the DGIT (Investigation Wing) Mumbai, the AO came to know that the assessee has been taking accommodation entries in order to inflate their purchases or expenses. Taking a leaf

Comfort Intech Limited, Mumbai vs. Assistant Commissioner of Income Tax 4(1)(1) Mumbai, Aaykar Bhawan Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2926/MUM/2024[2012-2013]Status: DisposedITAT Mumbai27 Sept 2024AY 2012-2013

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

company which is used for providing accommodation entries. A Search & Seizure action u/s 132 of the Act was carried out on the assessee by Investigation wing of Income Tax, Mumbai. During the search action the statement of Mr.Anil Agrawal was recorded. Anil Agrawal is director in assessee company ... bogus entities/companies managed by him for providing various bogus accommodation entries to the various beneficiaries for commission. In another search operation conducted by Delhi investigation wing statement of another entry operator Mr.Raj Kumar Kedia was recorded. Raj Kedia has highlighted role of Mr.Anil Agrawal in providing accommodation entries

Comfort Intech Limited, Mumbai vs. Assistant Commissioner of Income Tax 4(1)(1) Mumbai, Aaykar Bhawan Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2573/MUM/2024[2011-12]Status: DisposedITAT Mumbai27 Sept 2024AY 2011-12

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Jayshree Ravi Sancheti, Mumbai vs. PCIT-20, Mumbai

In the result, the appeal of the assessee is allowed

ITA 2269/MUM/2024[2013-14]Status: DisposedITAT Mumbai27 Sept 2024AY 2013-14

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Appellant: Shri Prakash Jhunjhunwala, ARFor Respondent: Ms. Rajeshwari Menon, Sr. DR

Section 10(38)Section 147Section 148Section 263Section 68Section 69C

This abnormality itself shows that it is an axiomatic truth that there exists a systematic and artificial manipulation of the scrip. The Investigation Wing, Mumbai has conducted enquiries in this case as a part of the investigation carried out country wide to unearth the organized racket of generating bogus entries

Assistant Commissioner of Income Tax- 4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2218/MUM/2024[2011-12]Status: DisposedITAT Mumbai27 Sept 2024AY 2011-12

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Assistant Commissioner of Income Tax-4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2216/MUM/2024[2012-13]Status: DisposedITAT Mumbai27 Sept 2024AY 2012-13

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

Assistant Commissioner of Income Tax- 4(1)(1), Mumbai vs. Comfort Intech Limited, Mumbai

In the result, the appeals filed by the Assessee are allowed and the appeals of the Revenue are dismissed

ITA 2212/MUM/2024[2014-15]Status: DisposedITAT Mumbai27 Sept 2024AY 2014-15

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Shri Rajiv Khandelwal&For Respondent: Shri Yogendra T. Wakare, Sr.DR

Section 132Section 143(1)Section 143(3)Section 148

M/S Ramniklal & Sons, Mumbai vs. Income Tax Officer-19(3)(1) Presented Dy. Commissioner of Income Tax 19(3), Mumbai

In the result, assessee gets a partial relief

ITA 1192/MUM/2024[2010-11]Status: DisposedITAT Mumbai27 Sept 2024AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri Girish Agrawalassessment Year: 2010-11

For Appellant: Shri Devang Divecha, CAFor Respondent: Smt. Mahita Nair, Sr. DR

Section 143(3)Section 68Section 69C

information from the O/o the DGIT(Investigation), Mumbai that search and seizure action was conducted in case of Shri Bhanwarlal Jain Group by investigation wing, Mumbai and the ld. Assessing Officer formed a reason to believe that the assessee has availed accommodation entries from the parties namely, M/s. Daksh Diamonds

Satyanarayan Holdings Pvt. Ltd., Kolkata vs. ITO, Ward-5(2), Kolkata

ITA 444/KOL/2024[2012-13]Status: DisposedITAT Kolkata26 Sept 2024AY 2012-13

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. No.444/Kol/2024 Assessment Year: 2012-13

Section 143(1)Section 249Section 250Section 253Section 3Section 5

same. This would be apparent from the observations of the Assessing Officer in the assessment order to the following effect:- ''Investigation made by the Investigation Wing of the department clearly showed that this was nothing but a sham transaction of accommodation entry. The assessee was asked to explain ... been duly considered and found not acceptable. This entry remains unexplained in the hands of the assessee as has been arrived by the Investigation wing of the department. As such entries of Rs.5~50/000/- received by the assessee are treated as an unexplained cash credit in the hands

Rukhmani Traders, Mumbai vs. ACIT 18 Mumbai, Mumbai

In the result, the appeal of the assessee is allowed

ITA 822/MUM/2024[2010-11]Status: DisposedITAT Mumbai26 Sept 2024AY 2010-11

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh () Assessment Year: 2010-11 M/S Rukhmani Traders, Asst. Cit -18(3), 6Th Floor, A Wing, Aurus Chambers, Earnest House, Nariman Point, Vs. S.S. Amrutwar Marg, Behind Mumbai-400021. Mahindra Towers, Worli, Mumbai-400013. Pan No. Aalfr 1619 R Appellant Respondent

For Appellant: Mr. Shreyash ShahFor Respondent: Mrs. Mahita Nair, Sr. DR

Section 147Section 151

survey u/s 133A of the Act carried out by the referred to a survey u/s 133A of the Act carried out by the Investigation Wing of Income of Income-tax Department, Ahmadabad tax Department, Ahmadabad at the premises of the brokers and few of their clients on 23.03.2015. The premises ... issue of client code modification arising from the ground that the issue of client code modification arising from the survey carried out by the Investigation Wing of the Ahmadabad the survey carried out by the Investigation Wing of the Ahmadabad the survey carried out by the Investigation Wing

Ishoo Narang, Hyderabad vs. DCIT Circle -2(1), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 450/HYD/2022[2014-15]Status: DisposedITAT Hyderabad25 Sept 2024AY 2014-15

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.450/Hyd/2022 & S.A. No.1/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2014-15) Ishoo Narang Vs. Dy. Cit Hyderabad Circle 2(1) Pan:Aaupn9082B Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri P Murali Mohan Rao, Ca राज" व "ारा/Revenue By:: Smt. Th Vijaya Lakshmi, Cit (Dr) सुनवाई की तारीख/Date Of Hearing: 19/08/2024 घोषणा की तारीख/Pronouncement: 25/09/2024 आदेश/Order Per Manjunatha, G. A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 15/07/2022 Of The Learned Cit (A)-Nfac Delhi, Relating To A.Y.2014-15. 2. The Assessee Has Raised The Following Grounds: “1. The Ld. Cit(A) Erred In Dismissing The Appeal. 2. The Ld.Cit(A) Erred In Holding That Al The Mandatory Preconditions Before Reopening Of Assessment U/S 147 Of The Act Were Duly Complied & Met With By The A.O.

For Appellant: Shri P Murali Mohan Rao, CAFor Respondent: : Smt. TH Vijaya Lakshmi, CIT (DR)

Section 10(38)Section 133ASection 147Section 68

Assessing Officer by taking note of relevant facts including statement on oath recorded from the assessee, findings of the reports submitted by the Investigation Wing, Kolkata I T Department has analyzed the share price of the above two companies in the stock market and observed that the assessee in collusion ... bogus Long- Term Capital Gain from above two shares in collusion with the entry providers which is evident from the reports submitted by the Investigation Wing, Kolkata I.T. Department where the modes operandi of entry providers has been explained. Therefore, he opined that there is no error in the addition

Prasant Desai, Kolkata vs. DCIT, Cir. 61, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 735/KOL/2024[2013-14]Status: DisposedITAT Kolkata25 Sept 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.735/Kol/2024 Assessment Year: 2013-14 Prasant Desai……..……………….………...........………………....Appellant C/O Subash Agarwal & Associates, Advocate, Siddha Gibson, 1, Gibson Lane, Suite – 213, 2Nd Floor, Kolkata – 700069. [Pan: Acypd1511B] Vs. Dcit, Circle-61, Kolkata.……………….…............................…..…..... Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Arup Chatterjee, Addl. Cit- Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : July 02, 2024 Date Of Pronouncing The Order : September 25, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 26.02.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Agitated Against The Confirmation Of Addition Of Rs.75,00,000/- Made By The Assessing Officer On Account Of Unsecured Loans Received From M/S Festive Deal Trade Pvt. Ltd. Treating The Same As Bogus.

Section 147Section 148Section 250

assessment of the assessee was reopened u/s 147 of the Act on the basis of information received by the Assessing Officer from the Investigation Wing that one Sri Mahesh Sharma, through his proprietorship concern M/s D P Trading, was I.T.A. No.735/Kol/2024 Assessment Year: 2013-14 Prasant Desai providing accommodation entries ... Reopening of the assessment is not permitted for making fishing and roving enquiries. The Assessing Officer, after receipt of alleged information received from the Investigation Wing was supposed to corelate the same with the records and other facts of the case and thereafter should have satisfied himself of escapement

M/S Flora Exports, Kolkata vs. ITO, Ward 31(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 502/KOL/2024[2014-15]Status: DisposedITAT Kolkata25 Sept 2024AY 2014-15

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.502/Kol/2024 Assessment Year: 2014-15 M/S Flora Exports……………….………...........………………....Appellant 17/2/H/13, Smith Lane, Taltala, Kolkata – 700013. [Pan: Aabff1684J] Vs. Ito, Ward-31(1), Kolkata.……………….…............................…..…..... Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Arup Chatterjee, Addl. Cit- Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : July 01, 2024 Date Of Pronouncing The Order : September 25, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 14.12.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Revised Grounds Of Appeal:

Section 139Section 143(1)Section 147Section 151Section 250

Assessing Officer that the assessee had obtained bogus purchase entries from one Shri Sanjiw Kumar Singh. That The information was received from the Investigation Wing and therefore, the Assessing Officer had reasons to believe that the income of the assessee had escaped assessment. 7. We have considered the rival contentions ... Reopening of the assessment is not permitted for making fishing and roving enquiries. The Assessing Officer, after receipt of alleged information received from the Investigation Wing was supposed to corelate the same with the records and other facts of the case and thereafter should have satisfied himself of escapement

Anju Chirania, Mumbai vs. The Income Tax Officer, Ward - 4(1)(3), Mumbai

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

ITA 3158/MUM/2024[2015-16]Status: DisposedITAT Mumbai25 Sept 2024AY 2015-16

Bench: Shri Pavan Kumar Gadale, Judicialmember & Shri Girish Agrawalanju Chirania, Vs. Ito, Ward –4(1)(3), 301, Sona Chambers, Room No. 637, 507/509, Jss Road, Aayakar Bhavan, Chira Bazar, Marine Lines, M.K.Road, Mumbai – 400 002. Mumbai-400020. Pan/Gir No. Afcpc9073Q (अपीलाथ"/Appellant) (""यथ"/Respondent)

Section 133(6)Section 147Section 148Section 69A

facts and in law in confirming the Assessing Officer's action in making addition by solely relying on the general information supplied by the investigation wing without making independent enquiries either by the Assessing Officer during the assessment proceedings or by the Ld. Commissioner of Income Tax (Appeals) himself through ... account of long-term capital gain on transfer of shares, which was based on generic findings of investigation wing, without there being any specific finding against the bonafide investment and sale by the appellant through online platform of recognized stock exchange through the SEBI registered stock broker