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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

Srujitha Annapareddy, Secunderabad vs. Income Tax Officer, Ward-12(1), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 253/HYD/2024[2016-17]Status: DisposedITAT Hyderabad22 May 2024AY 2016-17

Bench: Shri Manjunatha, G.आ.अपी.सं /Ita No.253/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2016-17) Smt. Surjitha Annapareddy Vs. Income Tax Officer Secunderabad Ward 12(1) Pan:Bnwpa6703L Hydrabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri A.V. Raghuram, Advocate राज" व "ारा/Revenue By:: Shri Y Srikanth Reddy, Dr सुनवाई की तारीख/Date Of Hearing: 22/05/2024 घोषणा की तारीख/Pronouncement: 22/05/2024

For Appellant: Shri A.V. Raghuram, AdvocateFor Respondent: : Shri Y Srikanth Reddy, DR
Section 10(38)Section 143(1)Section 147Section 148Section 68

called upon the assessee to file necessary evidences in support to purchase and sale of shares in light of investigation carried out by the Investigation Wing, Kolkata. The Assessing Officer after considering the relevant details and also taking note of the submission of the assessee, opined that the assessee ... considering the relevant submission of the assessee and also taken note of various evidences brought on record, including the investigation carried out by the Investigation Wing, Kolkata opined that, the Assessing Officer has reopened the assessment on the basis of fresh tangible material vis-à-vis escapement of income

Gem Forgings Pvt. Ltd., Kolkata vs. DCIT, Cir. 8(1), Kolkata

In the result, the appeals in ITA No

ITA 1426/KOL/2023[2014-15]Status: DisposedITAT Kolkata22 May 2024AY 2014-15

Bench: Shri Rajesh Kumar, Am& Shri Sonjoy Sarma, Jm]

Section 131Section 133(6)Section 143(3)Section 147Section 148Section 148(2)Section 250Section 68

information received which were vague itself and therefore the AO has simply relied on the information received from the Investigation Wing and has not applied his mind. The case of the assessee finds support from the decision of Hon’ble Delhi High Court in the case of CIT vs. SFIL

Gem Forgings Pvt. Ltd., Kolkata vs. DCIT, Cir. 8(1), Kolkata

In the result, the appeals in ITA No

ITA 1425/KOL/2023[2013-14]Status: DisposedITAT Kolkata22 May 2024AY 2013-14

Bench: Shri Rajesh Kumar, Am& Shri Sonjoy Sarma, Jm]

Section 131Section 133(6)Section 143(3)Section 147Section 148Section 148(2)Section 250Section 68

information received which were vague itself and therefore the AO has simply relied on the information received from the Investigation Wing and has not applied his mind. The case of the assessee finds support from the decision of Hon’ble Delhi High Court in the case of CIT vs. SFIL

Gem Forgings Pvt. Ltd., DCIT, Cir. 8(1) vs. DCIT, Cir. 8(1), Kolkata

In the result, the appeals in ITA No

ITA 1424/KOL/2023[2013-14]Status: DisposedITAT Kolkata22 May 2024AY 2013-14

Bench: Shri Rajesh Kumar, Am& Shri Sonjoy Sarma, Jm]

Section 131Section 133(6)Section 143(3)Section 147Section 148Section 148(2)Section 250Section 68

information received which were vague itself and therefore the AO has simply relied on the information received from the Investigation Wing and has not applied his mind. The case of the assessee finds support from the decision of Hon’ble Delhi High Court in the case of CIT vs. SFIL

Gem Forgings Pvt. Ltd., Kolkata vs. DCIT, Cir. 8(1), Kolkata

In the result, the appeals in ITA No

ITA 1423/KOL/2023[2012-13]Status: DisposedITAT Kolkata22 May 2024AY 2012-13

Bench: Shri Rajesh Kumar, Am& Shri Sonjoy Sarma, Jm]

Section 131Section 133(6)Section 143(3)Section 147Section 148Section 148(2)Section 250Section 68

information received which were vague itself and therefore the AO has simply relied on the information received from the Investigation Wing and has not applied his mind. The case of the assessee finds support from the decision of Hon’ble Delhi High Court in the case of CIT vs. SFIL

Income Tax Officer Ward-12(2)(1), Mumbai vs. Hak Hiring Pvt Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 3872/MUM/2023[2012]Status: DisposedITAT Mumbai22 May 2024

Bench: Shri B.R. Baskaran & Ms.Kavitha Rajagopalassessment Year :2012-13 Income Tax Officer,Ward-12(2)(1), Room No.145, 1St Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 --- Appellant Vs. Hak Hiring Pvt. Ltd. 606, Diago D. Sherly Rajan Road, Bandra (W), Mumbai 400 050. Pan: Aabch-2001-C --- Respondent

For Appellant: Shri P.D.Chougule, Sr.DRFor Respondent: Shri Subhash Chhajed
Section 143Section 148Section 68

assessee for the year under consideration was processed under section 143 (1) of the Act. Subsequently, the assessing officer received information from the investigation wing, Mumbai that the assessee company has induced public to make 2 ASSESSMENT YEAR :2012-13 deposits with it with a false assurance of doubling ... year under consideration. The learned CIT (A) noticed that the assessing officer has made the addition merely on the basis of information received from investigation wing. The learned CIT(A) also noticed that the assessing officer has written letters to the investigation wing asking for documentary evidences to support

Sanjay Jain, New Delhi vs. PCIT (Central) -3, New Delhi

In the result, the appeals preferred by the assessee are allowed

ITA 1587/DEL/2024[2013-14]Status: DisposedITAT Delhi22 May 2024AY 2013-14

Bench: The Bench: - “For A.Y. 2013-14

Section 153ASection 263

distinct proceedings before two different authorities. Copy of documents such as Warrant for authorisation of search, Panchnama etc, which are prepared by the Investigation wing are normally not kept in/not part of the assessment folder and are kept separately. They are referred by the assessing officer as and when required

Musaddilal Jewellers Private Limited, Hyderabad vs. ACIT, Circle-16(2), Hyderabad

In the result, appeal of the assessee is allowed

ITA 272/HYD/2023[2013-14]Status: DisposedITAT Hyderabad21 May 2024AY 2013-14

Bench: Shri Laliet Kumar, Hon’Ble & Shri Madhusudan Sawdia, Hon’Bleआयकर अपील सं./ I.T.A. No.272/Hyd/2023 ("नधा"रण वष" / Assessment Year:2013-14) Musaddilal Jewellers Private Vs. Acit, Limited, Circle-16(2), Hyderabad. Hyderabad. Pan: Aaecm1213A (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ" क" ओर से/ Appellant By : Ca Bhupesh Kumar Dand ""याथ" क" ओर से / Respondent By : Shri Rahul Singhania, Dr

For Appellant: CA Bhupesh Kumar DandFor Respondent: Shri Rahul Singhania, DR
Section 143(3)

order of the Ld. AO which is reproduced as under: “Q.15. It is brought to your notice that this office has received information from Investigation Wing of Mumbai with respect to accommodation entries provided by Mr. Bhanwarlal Jain Group related to your company M/s. Musaddilal Jewellers Pvt Ltd., during ... Bhanwarlal Jain and his son. 5. The Director was asked that because the entries is exactly matching from the piece of information received from Investigation Wing, it is the burden on the assessee to prove that the parties from whom the purchases are made are genuine and does not belong

Asst. Commissioner of Income Tax- 27(1), Mumbai vs. Deepak Chanderbhan Sudhija, Mumbai

In the result, appeal of the ld AO is allowed

ITA 3688/MUM/2023[2014-15]Status: DisposedITAT Mumbai21 May 2024AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Sunil Kumar Singh, Ar Acit, Circle- 27(1) Deepak Chanderbhan Sudhija 408, 4Th Floor, Tower No.6, 225/226 Commodity Exchange, Vashi Railway Station Vs. Plot No.2/3/4 Sector-17, Vashi, Complex,Vashi, Navi Mumbai, Navi Mumbai -400 705 Mumbai-400 703 (Appellant) (Respondent) Pan No. Banps6548H

For Appellant: NoneFor Respondent: Smt. Mahita Nair, DR
Section 133(6)Section 143(3)Section 147Section 148Section 68

completed on 28th December, 2015, at the total income of ₹88,26,923/-. Subsequently, based on information received from the investigation wing on 8th March 2017, that assessee has carried out high value credit transaction of ₹6 crores. Accordingly, notice under Section 148 of the Act was issued on 31st

ACIT, Central Circle-3(3), Hyderabad vs. Narendra Kumar Kamaraju, Hyderabad

In the result, appeal filed by the Revenue is dismissed

ITA 338/HYD/2022[2020-21]Status: DisposedITAT Hyderabad20 May 2024AY 2020-21

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Bleआयकर अपील सं./ I.T.A. No.338/Hyd/2022 ("नधा"रण वष" / Assessment Year: 2020-21) Asst. Commissioner Of Income Vs. Sri Narendra Kumar Tax, Central Circle-3(3), Kamaraju, Hyderabad. 3-83/1/A/5, Nizampet, Kukatpally, Hyderabad. Pan: Aiypk 1035 F (अपीलाथ"/ Appellant) (""यथ"/ Respondent) अपीलाथ" क" ओर से/ Appellant By : Ca Ravi Bharadwaj ""याथ" क" ओर से / Respondent By : Sri Kumar Pranav, Cit-Dr

For Appellant: CA Ravi BharadwajFor Respondent: Sri Kumar Pranav, CIT-DR
Section 132Section 132(4)Section 143(3)

land. The sole basis for making the addition in the hands of the assessee during the search proceedings was the statement recorded by the Investigation Wing U/s. 132(4) of the Act. As the Ld. Assessing Officer has made the addition in the hands of the assessee for the entire

M/S. Saroj Embrods Pvt. Ltd., Hooghly vs. DCIT, C.C-3(4), Kolkata.

In the result, both the appeals of the assessee are allowed

ITA 1352/KOL/2023[2016-17]Status: DisposedITAT Kolkata20 May 2024AY 2016-17

Bench: Shri Rajesh Kumar & Shri Sonjoysarma]

Section 143(1)Section 143(3)Section 147Section 148Section 69

allowed the appeal of the assessee by observing and holding as under: “Having considered all the facts, I find that the information sent by Investigation wing was not examined and cross verified by the Ld AO. Even no material has been brought on record of assessment order to show that ... without bringing any documentary evidence on records in assessment order, has simply made the addition on the basis of the communication from Investigation Wing. In my opinion, before the AO decides to make the addition, he has to satisfy himself, bring material on record, to show that purchases were bogus

Saroj Embrods Private Limited., Hooghly vs. DCIT, C.C-3(4), Kolkata.

In the result, both the appeals of the assessee are allowed

ITA 1351/KOL/2023[2015-16]Status: DisposedITAT Kolkata20 May 2024AY 2015-16

Bench: Shri Rajesh Kumar & Shri Sonjoysarma]

Section 143(1)Section 143(3)Section 147Section 148Section 69

allowed the appeal of the assessee by observing and holding as under: “Having considered all the facts, I find that the information sent by Investigation wing was not examined and cross verified by the Ld AO. Even no material has been brought on record of assessment order to show that ... without bringing any documentary evidence on records in assessment order, has simply made the addition on the basis of the communication from Investigation Wing. In my opinion, before the AO decides to make the addition, he has to satisfy himself, bring material on record, to show that purchases were bogus

Alma Assets Consultancy Private Limited., Ludhiana vs. ITO, Ward-4(3), Kolkata.

In the result, the appeal of the assessee stands allowed

ITA 1092/KOL/2023[2011-12]Status: DisposedITAT Kolkata20 May 2024AY 2011-12

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1092/Kol/2023 Assessment Year : 2011-12 Alma Assets Consultancy Pvt. Ltd.………............…...……………....Appellant 341-K1, Post Office: Sahabana, Chandigarh Road, Mundian Khurd Ludhiana. [Pan: Aaica6234H] Vs. Ito, Ward-4(3), Kolkata…….............................................…..…..... Respondent Appearances By: Shri Sunil Surana, Ar, Appeared On Behalf Of The Appellant. Shri Rakesh Kumar Das, Cit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : April 10, 2024 Date Of Pronouncing The Order : May 20 , 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 21.08.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] 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.10,26,99,100/- Made By The Assessing Officer As Unexplained Cash Credits Into The Income Of The Assessee. 3. The Assessee Through Its Grounds Of Appeal Has Contested Not Only The Validity Of The Additions On Merits But Also Relating To The Validity Of The Reopening Of The Assessment U/S 147 R.W.S. 148 Of The Act & Also The Validity Of The Assessment For Want Of Issue Of Notice U/S 143(2) Of

Section 143(1)Section 143(2)Section 147Section 148Section 250

assessee has never filed his return of income whereas he transactions through his bank account were huge. It has been reported by the investigation wing that the bank accounts have been used for layering of funds before transfer to the account of beneficiary. As per the cash trail several beneficiaries ... filed its return of income, was factually incorrect. The ld. Counsel has further submitted that the only information to the Assessing Officer from the Investigation Wing was that the assessee has received Rs.50,00,000/- from M/s Sanhit Vincom Pvt. Ltd. during F.Y 2010-11 and further Rs.50

Akar Laminators Limited, Ahmedabad vs. The ITO, Ward-1(1)(1) (Astt. Order Passsing Authority) Deputy Commissioner of Income Tax, Circle 1(1)(1) (Current Jurisdiction), Ahmedabad

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

ITA 717/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad17 May 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

For Appellant: Shri Sunil Talati, A.RFor Respondent: Shri H. Phani Raju, CIT D.R. & Ms. Saumya Pandey
Section 144Section 148Section 68

been approved by Hon. Supreme Court. This judgement is clearly applicable in this case. In this case, it has been proved by the Investigation Wing and the Assessing Officer that appellant has done accommodation transaction with M/s. Khaitan Overseas Corporation. Hence the addition made by the Assessing Officer is confirmed

Akar Laminators Limited, Ahmedabad vs. The ITO, Ward-1(1)(1) (Asstt. Order Passing Authority) Deputy Commissioner of Income Tax, Circle 1(1)(1) (Current Jurisdiction), Ahmedabad

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

ITA 716/AHD/2023[2012-13]Status: DisposedITAT Ahmedabad17 May 2024AY 2012-13

Bench: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

For Appellant: Shri Sunil Talati, A.RFor Respondent: Shri H. Phani Raju, CIT D.R. & Ms. Saumya Pandey
Section 144Section 148Section 68

been approved by Hon. Supreme Court. This judgement is clearly applicable in this case. In this case, it has been proved by the Investigation Wing and the Assessing Officer that appellant has done accommodation transaction with M/s. Khaitan Overseas Corporation. Hence the addition made by the Assessing Officer is confirmed

Income Tax Officer, Vejalpur vs. Digital Biotech Pvt. Ltd., Memnagar

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 1058/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad17 May 2024AY 2016-17

Bench: Ms. Suchitra R. Kamble & Shri Makarand V. Mahadeokar, Accountnat Member Assessment Year : 2016-17 Digital Biotech Pvt. Ltd., Income-Tax Officer, Vs A/9, Yashprabha Apartment, Ward-1(1)(3), Behind Janta Ice Cream, Ahmedabad Gurukul Road, Memnagar, Ahmedabad -380052 Pan : Aaccd 1831 B अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Tushar Hemani, Sr. Advocate & Shri Parimalsinh B. Parmar, Ar Revenue By : Ms. Bhavnasingh Gupta, Sr. Dr सुनवाई की तारीख/Date Of Hearing : 09/05/2024 घोषणा की तारीख /Date Of Pronouncement: 17/05/2024 आदेश/O R D E R Per Makarand V. Mahadeokar:

For Appellant: Shri Tushar Hemani, Sr. Advocate &For Respondent: Ms. Bhavnasingh Gupta, Sr. DR
Section 115JSection 143(3)Section 144BSection 147Section 148Section 250Section 271(1)(c)Section 68

total loss of Rs.2,65,25,195/- by accepting the returned income. 4. Thereafter, Ld. Assessing Officer, on the basis on information received from Investigation Wings, issued notice on 30.03.2021 u/s 148 of the Act and assessment proceeding was completed u/s 147 r.w. 144B

Ali Akbar Sami Choudhari, Mumbai vs. The Deputy Commissioner of Income Tax 23(1), Piramal Chamber, Mumbai

In the result, appeal filed by the assessee is dismissed

ITA 455/MUM/2024[AY 2015-16]Status: HeardITAT Mumbai17 May 2024

Bench: Shri Narendra Kumar Billaiya, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bleali Akbar Sami Choudhari V. Dcit – 23(1) Tps-3, 1St Floor, Basuri Apartments Dr. Ss Rao Marg, Parel Pali Naka, Bandra (W) Mumbai - 400012 Mumbai – 400050 Pan: Abvpc9898A (Appellant) (Respondent) Assessee Represented By : Shri Sumit Mantri Department Represented By : Shri Manoj Kumar Sinha

Section 132Section 143(1)Section 69

served upon the assessee. 4. During the course of the scrutiny assessment proceedings the Assessing Officer was seized with the information received from the Investigation Wing, Mumbai that during the search and seizure action under section 132 of the Act in the case of Runwal Group, statement of Shri Sandeep

Incometax Officer-19(2)(2), Mumbai vs. Meher Anoop Malani, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 4337/MUM/2023[2011-12]Status: DisposedITAT Mumbai17 May 2024AY 2011-12

Bench: Shri Narender Kumar Choudhry & Smt. Renu Jauhriito-19(2)(2) Vs. Meher Anoop Malani, Room No. 503, 5 Th Floor, 6, Homcruz Mansion, 2Nd Piramal Chamber, Floor, 72 Bhulabai Desai Lalbaug, Parel, Road, Mumbai-400012 Mumbai-400026 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aaepm08655D Appellant .. Respondent

For Appellant: Mr. Vinod JohnFor Respondent: Shri. Himanshu Kumar
Section 250

deleting the additions of Rs. 26,78,488/- made on LTCG, without considering the fact that, AO has relied on the report of Investigation Wing of Income-Tax Department, who has published the discreet report with a list of penny stocks/scripts and the assessee by transacting ... disallowance of Long Term Capital Gains of Rs 26,78,488/- without considering the fact that Assessing Office relied on the report of Investigation Wing which is premier investigation authority of Income tax department, therefore the onus is on the assessee to establish the genuineness of the price hike

Rekha Nilesh Shah, Mumbai vs. ITO, Ward 32(3)(2), Mumbai

In the result, appeal of assessee is partly allowed for statistical purposes

ITA 2300/MUM/2023[2013-2014]Status: DisposedITAT Mumbai17 May 2024AY 2013-2014

Bench: Shri Vikas Awasthy () & Shri Amarjit Singh ()

Section 147Section 148Section 68Section 69

record his own satisfaction, reopening on the basis of borrowed satisfaction is unsustainable. The Assessing Officer merely relied on the information received from the investigation wing and some statements of third parties. Copy of the statements on which the Assessing Officer has placed reliance for reopening the assessment were ... perusal of the reasons for reopening at page No. 3 of the paper book shows that information was received by the Assessing Officer from Investigation Wing regarding assessee obtaining bogus entries from trading in penny stocks. A further perusal of the reasons show that the Assessing Officer after receiving information

ITO, Ward-1, Narnaul vs. Ashok Kumar Gupta, Narnaul

In the result, the appeal filed by the Revenue is dismissed

ITA 944/DEL/2020[2009-10]Status: DisposedITAT Delhi17 May 2024AY 2009-10

Bench: Shri Kul Bharat & Dr.B.R.R.Kumar

Section 144Section 44ASection 69

appeal before us, nor any representation is made on his behalf. Moreover, Ld.CIT DR could not controvert the finding of Ld.CIT(A) that the Investigation Wing had reported about the business activity carried out by the assessee. It is not the case where the Ld.CIT(A) had returned finding without