“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

Darpan Vinimay (P) Ltd., Kolkata vs. Dc/ACIT, Cir-1(1), Kolkata.

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

ITA 832/KOL/2023[2011-12]Status: DisposedITAT Kolkata21 Feb 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 148Section 68

Jurisdictional AO erstwhile DCIT Circle-3(1), Kolkata, and sustained by the NFAC, are based on mere suspicion and information gathered from the Investigation Wing, without granting any opportunity of cross- examination and/or providing with such information for rebuttal of the appellant, on the basis of which the addition

Vrinda Engineers Pvt. Ltd., Kolkata vs. PCIT, Cer-1, Kolkata.

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

ITA 1274/KOL/2023[2012-13]Status: DisposedITAT Kolkata21 Feb 2024AY 2012-13

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Boradi.T.A. Nos. 1274/Kol/2023 Assessment Year: 2012-2013 Vrinda Engineers Pvt. Ltd.,.......................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2Nd Floor, Kolkata-700069 [Pan: Aaacv9131E] -Vs.- Principal Commissioner Of Income Tax,....Respondent Central-1, Kolkata, Aayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107 -A N D- I.T.A. Nos. 1232/Kol/2023 Assessment Year: 2012-2013 Vrinda Engineers Pvt. Ltd.,.......................Appellant C/O. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2Nd Floor, Kolkata-700069 [Pan: Aaacv9131E] -Vs.- Assistant Commissioner Of Income Tax,....Respondent Central Circle-1(1), Kolkata, Aayakar Bhawan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107

Section 142(1)Section 143(3)Section 263Section 4

relevant records, it is noticed that a survey under section 133A of the Act was conducted against your company on 01.03.2017 & 02.03.2017 by the Investigation Wing, Kolkata. In course of the survey operation, statement of Sri Jitendra Kumar Saraogi, one of the directors of your company was recorded under section

Vrinda Engineers Pvt. Ltd., Kolkata vs. ACIT, C.C-1(1), Kolkata.

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

ITA 1232/KOL/2023[AAACV9131E]Status: DisposedITAT Kolkata21 Feb 2024

Section 142(1)Section 143(3)Section 263Section 4

Vish Realty Solutions Private Limited, Kolkata vs. I.T.O., Ward-5(3), Kolkata

In the result, appeal of the revenue is dismissed

ITA 250/KOL/2020[2012-13]Status: DisposedITAT Kolkata21 Feb 2024AY 2012-13

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 250/Kol/2020 Assessment Year: 2012-13 Vish Realty Solutions Private Limited Income Tax Officer, Ward-5(3), 55, Ezra Street Vs Kolkata 2Nd Floor Kolkata - 700001 [Pan : Aadcv9938N] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri S. Jhajharia, A/R Revenue By : Shri Vineet Kumar, Addl. Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 16/01/2024 घोषणा क" तारीख /Date Of Pronouncement: 21/02/2024 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals) -10 (Hereinafter The “Ld. Cit(E)”) Dt. 02/12/2019, Passed U/S 263 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2012-13. 2. The Assessee Has Raised The Following Grounds Of Appeal:- “1. That The Learned Commissioner Of Income Tax (Appeals)-Io, Kolkata Erred In Passing An Order Dated 2Nd Of December, 2019 Under Section 143(3) Of The Income Tax Act, 1961 Dismissing The Appeal Of The Appellant Without Allowing Reasonable Opportunity Of Being Heard. 2. That The Learned Commissioner Of Income Tax (Appeals) - 10, Kolkata Erred In Confirming The Addition Of Share Application Money Ofrs. 5,86,00,000/- Made By The Assessing Officer Under Section 68 Of The Income Tax Act, 1961 On Irrelevant Considerations & Arbitrary Grounds.

For Appellant: Shri S. Jhajharia, A/RFor Respondent: Shri Vineet Kumar, Addl. CIT, D/R

Section 143(2)Section 143(3)Section 14ASection 263Section 68

subsequent years, i.e., AY: 2011-12 and AY: 2012-13, assessment proceedings were reopened on the basis of information received from the Investigation Wing and orders w/s. 147 read with section 143(3) have been passed on 21.12.2018 and 11.12.2018 respectively for assessment year 2011-12 and assessment year ... assessment year 2011-12 information was received from the Investigation Wing regarding unaccounted income of Rs. 3,00,000/- received by M/s. Seaview 12 I.T.A. No. 250/Kol/2020 Assessment Year: 2012-13 Vish Realty Solutions Private Limited Agencies Pvt. Ltd. and accordingly addition of this amount was made by treating

Shree Cement Limited, Beawar vs. National Faceless Assessment Centre, Delhi

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

ITA 500/JPR/2023[215-16]Status: DisposedITAT Jaipur21 Feb 2024

Bench: or at the time of hearing of this appeal.

For Appellant: Sh. Dilip B Desai(C.A.)For Respondent: Sh. Alka Gautam (CIT) (V.H) &

Section 115JSection 143Section 143(3)Section 144BSection 144B(1)(xvi)Section 80Section 80I

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh

Shree Cement Limited, Beawar vs. National Faceless Assessment Centre, Deputy Commissionerof Income Tax, Circle -2, Ajmer

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

ITA 496/JPR/2023[2016-17]Status: DisposedITAT Jaipur21 Feb 2024AY 2016-17

Bench: or at the time of hearing of this appeal.

For Appellant: Sh. Dilip B Desai(C.A.)For Respondent: Sh. Alka Gautam (CIT) (V.H) &

Section 115JSection 143Section 143(3)Section 144BSection 144B(1)(xvi)Section 80Section 80I

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A” JAIPUR Mk0 ,l- lhrky{eh

Ram Dhan Yadav, Chomu Jaipur vs. Income Tax Officer, ITO 7(3), Jaipur

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

ITA 369/JPR/2023[2008-09]Status: DisposedITAT Jaipur20 Feb 2024AY 2008-09

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rajesh Soni (C.A.)For Respondent: Shri Anoop Singh (Addl.CIT)

Section 143(3)Section 144Section 147Section 148Section 69B

1002/JP/2018 & 1119/JP/2018 M/s. Kota Dall Mill Date of Pronouncement : 31/12/2018. 11.1. Even otherwise, the assessment order is solely based on the report of the Investigation Wing Kolkata which in turn is nothing but the narration of the statements recorded during the investigation and the AO was having in possession ... statement of only Shri Anand Sharma. Therefore, all these proceedings conducted by the Investigation Wing Kolkata were at the back of the assessee and hence the statement which is the foundation of the report of the Investigation Wing Kolkata as well as the assessment order cannot be accepted

Ram Dhan Yadav, Chomu Jaipur vs. ITO, WD 7(3), Jaipur

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

ITA 366/JPR/2023[2007-2008]Status: DisposedITAT Jaipur20 Feb 2024AY 2007-2008

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Rajesh Soni (C.A.)For Respondent: Shri Anoop Singh (Addl.CIT)

Section 143(3)Section 144Section 147Section 148Section 69B

Reliance Corporation, Mumbai vs. Dy. CIT Central Circle - 1, Thane

In the result, all the three appeals of the assessee are allowed

ITA 2725/MUM/2023[2013-14]Status: DisposedITAT Mumbai20 Feb 2024AY 2013-14

Bench: Shri B.R. Baskaran (Am) & Shri Sandeep Singh Karhail (Jm)

Section 147Section 68

make any independent inquiry with regard to the loans taken by the assessee. He has mainly relied upon the report given by the Investigation Wing and also the statement taken from the assessee in A.Y. 2013-14. He submitted that the Assessing Officer had made identical addition by taking identical ... examinations. However, the AO has refused to admit those loans as proved, only for the reason that these companies have been categorized by the investigation wing as bogus companies. We also notice that the AO has not pointed out any defect in the documents furnished by the assessee in order

Reliance Corporation, Mumbai vs. Dy. CIT Central Circle - 1, Thane

In the result, all the three appeals of the assessee are allowed

ITA 2724/MUM/2023[2011-12]Status: DisposedITAT Mumbai20 Feb 2024AY 2011-12

Bench: Shri B.R. Baskaran (Am) & Shri Sandeep Singh Karhail (Jm)

Section 147Section 68

Reliance Corporation, Mumbai vs. Dy. CIT, Central Circle - 1, Thane

ITA 2723/MUM/2023[2014-15]Status: DisposedITAT Mumbai20 Feb 2024AY 2014-15

Bench: Shri B.R. Baskaran (Am) & Shri Sandeep Singh Karhail (Jm)

Section 147Section 68

Chirag Tejprakash Dangi, Mumbai vs. Income Tax Officer, Ward 26(1)(5), Mumbai

ITA 3256/MUM/2022[2014-15]Status: DisposedITAT Mumbai20 Feb 2024AY 2014-15

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

Section 10(38)Section 131Section 148Section 68Section 69C

Assessing Officer noticed that all the three companies mentioned above have been identified as ‘penny stock’ by the Investigation Wing, Kolkata, in which prices of the shares have been rigged in order to generate bogus capital gains/capital losses. The Assessing Officer also noticed from the report prepared by the Investigation ... justified in disbelieving the transactions carried on by the assessee are not genuine by placing reliance on the general investigation report given by the Investigation Wing of Kolkata. 7. On the contrary, the learned DR heavily placed reliance on the order passed by the Assessing Officer. He submitted that

M/S. Lectrodryer Marketing Private Limited., Kolkata vs. ITO, Ward-9(1), Kolkata.

In the result, the appeal of the assessee stands allowed

ITA 849/KOL/2023[2010-11]Status: DisposedITAT Kolkata19 Feb 2024AY 2010-11

Bench: Shri Sanjay Garg & Shri Rajesh Kumari.T.A. No.849/Kol/2023 Assessment Year: 2010-11 M/S Lectrodryer Marketing Pvt. Ltd..........................…………………….……Appellant 5, Clive Row, Room No.60A, 3Rd Floor, Kolkata-1. [Pan: Aaacl5914H] Vs. Ito, Ward-9(1), Kolkata………..…..…….…..….........…........……...…..…..Respondent Appearances By: Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Appellant. Shri B. K. Singh, Jcit- Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 02, 2024 Date Of Pronouncing The Order : February 19, 2024 Order Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 14.06.2023 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’).

Section 147Section 250Section 68

from unexplained sources. 4. The case of the assessee was reopened u/s 147 r.w.s. 148 of the Act on the basis of report of Investigation Wing that there was cash movement in different accounts, whereby, the money was transferred from one account to another account, and thereafter reached the account

Tanuj Properties Private Limited., Kolkata vs. I.T.O, Ward-9(1), Kolkata.

In the result, the appeal of the assessee stands allowed

ITA 1045/KOL/2023[2012-13]Status: DisposedITAT Kolkata19 Feb 2024AY 2012-13

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1045/Kol/2023 Assessment Year : 2012-13 Tanuj Properties Pvt. Ltd. (Successor To Darshan Tradelink Pvt. Ltd……………….…………....Appellant 6Th Floor, Unit-6A, 238A, A.J.C. Bose Road, L.R. Sarani S.O., Kolkata - 700020 [Pan: Aacct4910B] Vs. Ito, Ward-9(1), Kolkata…………….................................…..…..... Respondent Appearances By: Shri Akkal Dudhewala, Ar, Appeared On Behalf Of The Appellant. Shri Bonnine Debarma, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 22, 2024 Date Of Pronouncing The Order : February 19, 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 20.09.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As The ‘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 Grounds Of Appeal: “1. A) For That On The Facts & In The Circumstances Of The Case, The Order U/S 147/143(3) Was Passed By The A.O Who Did Not Hold Valid Jurisdiction & Therefore The Impugned Order Being Ab Initio Void Deserves To Be Quashed. B) For That On The Facts & In The Circumstances Of The Case, The Notice U/S 148 Of The Act Was Issued In The Name Of Non-Existent Entity & In

Section 147Section 148Section 250

income of the assessee has escaped assessment. That the Assessing Officer while recording the reasons recorded has observed that the information was received from Investigation Wing that M/s Nivyah Infrastructure and Telecom Services Limited was a penny stock company and that this company has been used to facilitate to introduce

Sh. Vibhav Jain, Ludhiana vs. DCIT, CC-III, Ludhiana

In the result, the ground no

ITA 355/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh16 Feb 2024AY 2013-14

Bench: SHRI. SANJAY GARG (Judicial Member), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Smt. Kusum Bansal, CIT DR

Section 10(36)Section 10(38)Section 143(1)Section 143(2)Section 153A

order of Assessing Officer by relying upon the statement of one Sh. Sunil Kumar Kayan and Sh. S.K. Khemka, which was recorded by the Investigation Wing, Kolkata on 13.03.2015 and not during the course of search of the assessee and, thus, the same could not be said ... Access Global Ltd. and M/s Maple Goods (P) Ltd. resembled the character of Penny Stocks which have been investigated at length by Investigation Wing, Kolkata. 3.5 The AO further referred to the statement of Shri Suresh Khemka, the broker through which the share of M/s Maple Goods (P) Ltd. were

Dreamtech Constructions Pvt. Ltd., New Delhi vs. DCIT Circle-7(1), New Delhi

In the result, Appeal filed by the assessee in ITA No

ITA 91/DEL/2021[2012-13]Status: DisposedITAT Delhi16 Feb 2024AY 2012-13

Bench: or at the time of hearing of the appeal.”

Section 143(3)Section 68

Income Tax Act, 1961. 17. On the other hand, the Revenue had no pre information by the way of any enquiries conducted by the Investigation Wing or by the way of any search & seizure operation either on the Assessee or on the share applicants/loan providers. The Assessing Officer

Dreamtech Constructions Pvt Ltd., Delhi vs. DCIT Circle-10(1), New Delhi

In the result, Appeal filed by the assessee in ITA No

ITA 90/DEL/2021[2011-12]Status: DisposedITAT Delhi16 Feb 2024AY 2011-12

Bench: or at the time of hearing of the appeal.”

Section 143(3)Section 68

DCIT - CC- 3, Thane vs. Ajiv Yashwant Patil, Mumbai

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

ITA 610/MUM/2022[2008-09]Status: DisposedITAT Mumbai15 Feb 2024AY 2008-09

Bench: Ms. Kavitha Rajagopal, Jm & Shri Gagan Goyal, Am Ajiv Yashwant Patil Acit, Central Circle-3 103, Parijat Apartments, Gaothan, Thane Vs. Virar (W), Thane-401 303

For Appellant: Shri Subodh RatnaparkhiFor Respondent: 22.11.2023

Section 132Section 143(2)Section 143(3)Section 147Section 148Section 250

assessment made u/s. 143(3) of the Act in the assessee’s case during the impugned year and based on the information received from Investigation Wing that the assessee has received cash in respect of Alkapuri land based on page nos. 1 & 2 of Annexure A-2 of bundle

Ajiv Yashwnat Patil, Thane vs. ACIT, Central Circle-3, Thane

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

ITA 549/MUM/2022[2008-09]Status: DisposedITAT Mumbai15 Feb 2024AY 2008-09

Bench: Ms. Kavitha Rajagopal, Jm & Shri Gagan Goyal, Am Ajiv Yashwant Patil Acit, Central Circle-3 103, Parijat Apartments, Gaothan, Thane Vs. Virar (W), Thane-401 303

For Appellant: Shri Subodh RatnaparkhiFor Respondent: 22.11.2023

Section 132Section 143(2)Section 143(3)Section 147Section 148Section 250

Madhulika Tiwari, Delhi vs. ACIT, Central Circle-20, Delhi

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

ITA 600/DEL/2023[2019-20]Status: HeardITAT Delhi15 Feb 2024AY 2019-20

Bench: Shri N.K. Billaiya & Shri Kul Bharat

For Appellant: Shri Vinod Kumar Garg, AdvFor Respondent: Shri Subhra Jyoti Chakroborty, CIT-DR

Section 132Section 69

Briefly stated, the facts of the case are that a search and seizure operation u/s 132 of the Act was conducted by the Investigation Wing on 12.07.2018 in Rohit Tiwari Group of cases. Two lockers, namely Locker No. 724 and Locker No. 482 of New Delhi Vaults Limited were also