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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

Aspen International Private Limited, Mumbai vs. Assistant Commissioner of Income Tax-Central Circle-4(4), Mumbai

In the result, all the appeals of the assessee are allowed and all the appeals of the Revenue are dismissed

ITA 3467/MUM/2023[2016-17]Status: DisposedITAT Mumbai05 Apr 2024AY 2016-17

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI S RIFAUR RAHMAN (Accountant Member)

Section 133ASection 143(3)Section 147Section 148Section 149Section 151Section 69C

appreciating the facts of the case. 3. The brief facts of the case are that a survey action U/s 133A was carried out by investigation wing on 23/03/2021 on Veritas Group and during the course of survey statement of Shri Nitin Didwania alongwith other employees of the group was recorded ... issue of amalgamation of various group companies and creation of goodwill in the books and claiming depreciation thereon. Investigation Wings communicated the said information with the concerned Assessing officer. In this case the assessing officer based on the finding of the survey report recorded following reasons were recorded before issue

Aspen International Private Limited, Mumbai vs. Assistant Commissioner of Income Tax-Central Circle-4(4), Mumbai

In the result, all the appeals of the assessee are allowed and all the appeals of the Revenue are dismissed

ITA 3466/MUM/2023[2017-18]Status: DisposedITAT Mumbai05 Apr 2024AY 2017-18
Section 133ASection 143(3)Section 147Section 148Section 149Section 151Section 69C

appreciating the facts of the case. 3. The brief facts of the case are that a survey action U/s 133A was carried out by investigation wing on 23/03/2021 on Veritas Group and during the course of survey statement of Shri Nitin Didwania alongwith other employees of the group was recorded ... issue of amalgamation of various group companies and creation of goodwill in the books and claiming depreciation thereon. Investigation Wings communicated the said information with the concerned Assessing officer. In this case the assessing officer based on the finding of the survey report recorded following reasons were recorded before issue

DCIT, Central Circle 3(3), Mumbai vs. Avaada Ventures Pvt. Ltd, Mumbai

ITA 2750/MUM/2023[2014-15]Status: DisposedITAT Mumbai05 Apr 2024AY 2014-15
Section 132Section 132(4)Section 139(1)Section 143(3)Section 153A

same has been tabulated in the following manner:- Sr No. Nature of finding Remarks 1. Inspector report dated 25.08.2017 Post search enquiries conducted by investigation wing without any reference to any incriminating material 2. Statement of Saroj Swaika and Renu Swaika u/s 131 dated 30.06.2017 at DDIT(lnv.) office Third ... recorded at the premises of the appellant without any reference to any incriminating material 3 Inspector report dated 30.6.2017 Field Inquiries conducted by the investigation wing without any reference to any incriminating material 4 Statement of Shri Mrudul Kumar Gehlot u/s 131 dated 01.07. 2017 Statement of employee

DCIT, Central Circle- 3(3), Mumbai vs. Avaada Ventures Pvt. Ltd, Mumbai

In the result, all the appeals of the Revenue are

ITA 2749/MUM/2023[2013-14]Status: DisposedITAT Mumbai05 Apr 2024AY 2013-14
Section 132Section 132(4)Section 139(1)Section 143(3)Section 153A

same has been tabulated in the following manner:- Sr No. Nature of finding Remarks 1. Inspector report dated 25.08.2017 Post search enquiries conducted by investigation wing without any reference to any incriminating material 2. Statement of Saroj Swaika and Renu Swaika u/s 131 dated 30.06.2017 at DDIT(lnv.) office, Third ... recorded at the premises of the appellant without any reference to any incriminating material 3 Inspector report dated 30.6.2017 Field Inquiries conducted by the investigation wing without any reference to any incriminating material 4 Statement of Shri Mrudul Kumar Gehlot u/s 131 dated 01.07. 2017 Statement of employee

Lalitaben Pravin Shah, Mumbai vs. Commissioner of Income Tax (Appeals), Delhi

In the result, the appeal of the assessee is allowed

ITA 2008/MUM/2023[2014-2015]Status: DisposedITAT Mumbai05 Apr 2024AY 2014-2015

Bench: Justice (Retd.) C.V. Bhadang () & Shri B.R. Baskaran (Am)

Section 10(38)Section 133(6)Section 68

Rs.84,89,785/-. The assessee claimed the same as exempt u/s 10(38) of the Act. 3. The Assessing Officer noticed that the investigation wing of Kolkata has reported that the bogus capital gains were generated by rigging the price of shares of certain companies, which were named as "penny ... market value of shares was not commensurate with the actual fundamentals of that company. He also noticed from the report given by the investigation wing of Kolkata that the operators were rigging the prices of shares. The said report also included the statement taken from one of the operators named

Bhanvi Buildtech (P) Ltd., Delhi vs. DCIT, Central Circle-Noida, Noida

In the result, the appeal of the assessee in ITA No

ITA 684/DEL/2020[2013-14]Status: DisposedITAT Delhi05 Apr 2024AY 2013-14

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Gautam Jain, AdvFor Respondent: Shri Sanjay Pandey, CIT-DR
Section 127(2)Section 144Section 153CSection 156

that is the CITCA), Kanpur. 10. That the assessment has been framed purely on the basis of the information provided by the Investigation wing, without having possession of the assessment records, at the time of recording the reasons as required u/s.153C and the Assessing Officer has not made any independent

Dhaval Dhushant Vora, Mumbai vs. Assistant Commissioner of Income Tax 33(1), Mumbai

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

ITA 3013/MUM/2023[2011-12]Status: DisposedITAT Mumbai04 Apr 2024AY 2011-12

Bench: Shri Narender Kumar Choudhry, Jm & Ms Padmavathy S, Am

For Appellant: Shri Viraj Mehta, CAFor Respondent: Smt. Mahita Nair, Sr. DR
Section 132Section 132(4)Section 147Section 148Section 151Section 153Section 69

jurisdiction assumed by the A.Ο. 2. The reasons recorded and the assessment completed are solely on the basis of information from the Investigation Wing being not in the nature of Tangible material vitiating the assumptions of jurisdiction since it was out of borrowed satisfaction. 3. Despite on the aforesaid

DCIT, CC-28, New Delhi vs. Lumax Auto Technologies Ltd, New Delhi

ITA 948/DEL/2021[2018-19]Status: DisposedITAT Delhi04 Apr 2024AY 2018-19

Bench: DR. B.R.R. KUMAR (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 132(4)Section 69A

assets were found. Thereafter, notice under section 143(2) of the Act was issued by the Ld. AO. It was informed by the Investigation Wing that during the course of the search and seizure operation, it was found that a few companies of M/s Lumax Group were involved in over

DCIT, CC-28, New Delhi vs. Lumax Dk Auto Industries Ltd., New Delhi

ITA 947/DEL/2021[2018-19]Status: DisposedITAT Delhi04 Apr 2024AY 2018-19

Bench: DR. B.R.R. KUMAR (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 132(4)Section 69A

assets were found. Thereafter, notice under section 143(2) of the Act was issued by the Ld. AO. It was informed by the Investigation Wing that during the course of the search and seizure operation, it was found that a few companies of M/s Lumax Group were involved in over

DCIT Central Circle-28, New Delhi vs. Lumax Industries Limited, New Delhi

ITA 1846/DEL/2020[2018-19]Status: DisposedITAT Delhi04 Apr 2024AY 2018-19

Bench: DR. B.R.R. KUMAR (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 132(4)Section 69A

assets were found. Thereafter, notice under section 143(2) of the Act was issued by the Ld. AO. It was informed by the Investigation Wing that during the course of the search and seizure operation, it was found that a few companies of M/s Lumax Group were involved in over

The Pr. Commissioner of Income Tax -Central-1 vs. Ojjus Medicare Pvt. Ltd

ITA/52/2024HC Delhi03 Apr 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

ITA 52/2024 & connected matters Page 1 of 179 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on

Ravikumar Kamleshbhai Shah, Ahmedabad vs. The Income Tax Officer, Ward -5(2)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 497/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad03 Apr 2024AY 2017-18

Bench: SHRI WASEEM AHMED (Accountant Member), MS. MADHUMITA ROY (Judicial Member)

For Appellant: Shri M. S. Chhajed, A.RFor Respondent: Shri C. Dharninath V. S., Sr. D.R
Section 115BSection 133(6)Section 145Section 68

justify the availability of stock against the alleged sales. Asstt. Year- 2017-18 3 5.2 The AO also found that the investigation wing vide latter number DDIT(Inv)/U-1(1)/Info./Cash dep./18-19 dated 30 March 2019 has referred the transaction as suspicious which were carried

Balaji Buillion & Commodities (India) Pvt. Ltd., Mumbai vs. DCIT - CC- 7(1), Mumbai

In the result, the appeal of the assessee is dismissed

ITA 3599/MUM/2018[2009-10]Status: DisposedITAT Mumbai03 Apr 2024AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Years: 2009-10 M/S Balaji Bullion & Dcit Central Circle-7(1), Commodities (India) Pvt. Ltd., Mumbai. 118/120, 3Rd Floor, Ashoka Vs. House Zaveri Baazar, Mumbai-400 002. Pan No. Aadcb 0236 F Appellant Respondent : Mr. N.M. Porwal Assessee By Revenue By : Mr. S. Srinivasu, Cit-Dr : 27/03/2024 Date Of Hearing Date Of Pronouncement : 03/04/2024

For Respondent: Mr. N.M. Porwal
Section 234BSection 68

premises of Shri Manoj B. Punamiya and others by the out at the premises of Shri Manoj B. Punamiya and others by the Investigation Wing, Mumbai on 31.10.2009 assessment in the cases ation Wing, Mumbai on 31.10.2009 assessment in the cases ation Wing, Mumbai on 31.10.2009 assessment in the cases ... their premises by the information was received was search of their premises by the information was received was search of their premises by the Investigation Wing of the Income Investigation Wing of the Income-tax Department which being a tax Department which being a credible and reliable source

Compact Texfab Pvt. Ltd., New Delhi vs. ITO Ward - 6(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 9524/DEL/2019[2011-12]Status: DisposedITAT Delhi03 Apr 2024AY 2011-12

Bench: Shri Saktijit Dey, Hon’Ble & Shri M. Balaganeshcompact Texfab Pvt. Ltd, Vs. Ito, 1032, H. No. 66, Gali No. Ward-6(2), 33, Jafrabad, New Delhi New Delhi (Appellant) (Respondent) Pan: Aadcc3621P Assessee By : Shri Akhilesh Kumar, Adv Shri Ankit Kumar, Adv Revenue By: Shri Vivek Kumar Upadhyay, Sr. Dr Date Of Hearing 07/02/2024 Date Of Pronouncement 03/04/2024

For Appellant: Shri Akhilesh Kumar, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR
Section 139(1)Section 143(1)Section 147Section 148

merely stated the primary facts that are either incorrect or already accounted and available in the financial statements of the assessee company. The investigation wing had alleged these loan transactions with aforesaid 4 entities to be accommodation entries. The ld. AO without making any verification from his side with regard ... hence should be ignored, in our opinion, is an argument that is completely misconceived. As indicated above, if the information received (from the investigation wing) was that the accommodation entries, in lieu of cash, were taken in the form of share capital and share premium they could certainly

Warm Forgings P.Ltd, New Delhi vs. DCIT, Circle-27(1), New Delhi

In the result, appeal of the assessee is allowed as indicated

ITA 1148/DEL/2019[2010-11]Status: DisposedITAT Delhi03 Apr 2024AY 2010-11

Bench: Shri Challa Nagendra Prasad & Dr. B.R.R. Kumarआ.अ.सं/.I.T.A No.1148/Del/2019 िनधा"रणवष"/Assessment Year: 2010-11 बनाम Warm Forgings P. Ltd., Dcit Plot No.117 & 118, A-3, Vs. Circle 27(1), Sector-11, Rohini, New Delhi. New Delhi. Pan No.Aabcc7684C अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 147Section 148Section 153CSection 68Section 69C

reopening the assessment u/s 147 of the Act by the AO merely on the basis of some information and directions received from the investigation wing of the income-tax department without following the proper procedure laid down by the law. Thus the reopening of the assessment ... assessment u/s 147. 8. Appreciating the submissions it comes up that Ld. AO has primarily examined the issue on the basis of Investigation Wing information to consider the disputed entries to be accommodation ones. He mentions the reopening was on the basis of seized document seized from Jain Brothers

Hem Lata Jhunjhunwala, Kolkata vs. ACIT, Cir-11(2), Kolkata.

In the result, grounds taken by the assessee in this respect for AY 2011-12 are allowed

ITA 751/KOL/2023[2012-13]Status: DisposedITAT Kolkata01 Apr 2024AY 2012-13

Bench: Shri Rajpal Yadav & Shri Girish Agrawal

For Appellant: Shri Manoj Kataruka, AdvocateFor Respondent: Shri Prabhakar Prakash Ranjan, Addl. CIT
Section 139(1)Section 143(2)Section 143(3)Section 147Section 148Section 68

independent enquiry. He has not verified the correctness of the information received by him from the Hem Lata Jhunjhunwala, AYs 2011-12 & 2012-13 Investigation Wing but has accepted it in a mechanical manner. We draw our force from the decision of Hon’ble High Court of Delhi

Hem Lata Jhunjhunwala, Kolkata vs. ACIT, Cir-11(2), Kolkata.

In the result, grounds taken by the assessee in this respect for AY 2011-12 are allowed

ITA 750/KOL/2023[2011-12]Status: DisposedITAT Kolkata01 Apr 2024AY 2011-12

Bench: Shri Rajpal Yadav & Shri Girish Agrawal

For Appellant: Shri Manoj Kataruka, AdvocateFor Respondent: Shri Prabhakar Prakash Ranjan, Addl. CIT
Section 139(1)Section 143(2)Section 143(3)Section 147Section 148Section 68

independent enquiry. He has not verified the correctness of the information received by him from the Hem Lata Jhunjhunwala, AYs 2011-12 & 2012-13 Investigation Wing but has accepted it in a mechanical manner. We draw our force from the decision of Hon’ble High Court of Delhi

Deputy Commissioner of Income Tax -23(1), Mumbai vs. Kalpsaru Diamonds, Mumbai

In the result, the grounds raised by the assessee as well as In the result, the grounds raised by the assessee as well as Revenue are allowed for statistical purposes

ITA 3400/MUM/2023[2012-13]Status: DisposedITAT Mumbai28 Mar 2024AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Years: 2012-13 Kalpsaru Diamonds, Acit 23(2), Jw 8040/250, Bharat Diamond Piramal Chambers, Vs. Bourse, Bkc, Bandra East, Mumbai-400013. Mumbai-400051. Pan No. Aaafk 6960 H Appellant Respondent Assessment Years: 2012-13 Dy. Cit-23(1), Kalpsaru Diamonds, Room No. 511, Fifth Floor, Jw 8040/250, Bharat Diamond Piramal Chambers, Parel, Vs. Bourse, Bkc, Bandra East, Lalbaugh-400012. Mumbai-400051. Pan No. Aaafk 6960 H Appellant Respondent

For Respondent: Mr. Ajay Singh
Section 143(3)Section 148Section 69C

short ‘the Act’) on 10.05.2013. Subsequently, 1961 (in short ‘the Act’) on 10.05.2013. Subsequently, assessing officer received assessing officer received information from the Investigation Wing, information from the Investigation Wing, Mumbai that during search and seizure actio during search and seizure action in the cases ... information received from the Investigation reopened based on the information received from the Investigation reopened based on the information received from the Investigation Wing without conducting any investigation by the AO. The conducting any investigation by the AO. The finding conducting any investigation

Kalpsaru Diamonds, Mumbai vs. ACIT 23(2), Mumbai

In the result, the grounds raised by the assessee as well as In the result, the grounds raised by the assessee as well as Revenue are allowed for statistical purposes

ITA 3223/MUM/2023[2012-13]Status: DisposedITAT Mumbai28 Mar 2024AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Years: 2012-13 Kalpsaru Diamonds, Acit 23(2), Jw 8040/250, Bharat Diamond Piramal Chambers, Vs. Bourse, Bkc, Bandra East, Mumbai-400013. Mumbai-400051. Pan No. Aaafk 6960 H Appellant Respondent Assessment Years: 2012-13 Dy. Cit-23(1), Kalpsaru Diamonds, Room No. 511, Fifth Floor, Jw 8040/250, Bharat Diamond Piramal Chambers, Parel, Vs. Bourse, Bkc, Bandra East, Lalbaugh-400012. Mumbai-400051. Pan No. Aaafk 6960 H Appellant Respondent

For Respondent: Mr. Ajay Singh
Section 143(3)Section 148Section 69C

short ‘the Act’) on 10.05.2013. Subsequently, 1961 (in short ‘the Act’) on 10.05.2013. Subsequently, assessing officer received assessing officer received information from the Investigation Wing, information from the Investigation Wing, Mumbai that during search and seizure actio during search and seizure action in the cases ... information received from the Investigation reopened based on the information received from the Investigation reopened based on the information received from the Investigation Wing without conducting any investigation by the AO. The conducting any investigation by the AO. The finding conducting any investigation

Purshottam Leelaram Ubhrani, Nashik vs. Income Tax Officer, Thane, Mumbai

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

ITA 2611/MUM/2023[2010-11]Status: DisposedITAT Mumbai28 Mar 2024AY 2010-11

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI S RIFAUR RAHMAN (Accountant Member)

Section 124(3)(a)Section 132(4)Section 143(3)Section 147Section 148Section 69

order as well as material placed on record, it is seen that, in so far as reopening is concerned, the information received from the Investigation Wing gathered during the course of search and seizure operations in the case of M/s. Cosmos group that they had received cash as on-money ... assessee alongwith amount of Rs.7,50,000/- has been specifically mentioned. The ld. AO may have in his possession some letter from Investigation Wing, but that material should not be in his own knowledge or possession, albeit he should have confronted to the assessee and brought on record