“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

Ncc Limited, Hyderabad vs. DCIT, Central Circle-1(1), Hyderabad

Accordingly, we delete the same. Thus, this ground is partly allowed

ITA 74/HYD/2017[2009-10]Status: DisposedITAT Hyderabad31 Jan 2024AY 2009-10

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumar

For Appellant: Shri Vijay Mehta, CA &For Respondent: Shri K. Madhusudan, CIT(DR)

Section 143(1)

Govt. of Madhya Pradesh. Subsequently investigations were made. Various documents and evidence gathered by the DDIT (Inv.) Bhopal were forwarded to the Investigation Wing of Hyderabad. Page 4 of 65 ITA Nos 73 to 75 and 77 to 80 of 2017 NCC Ltd 6. Further, on 31.10.2009, search and seizure ... After the search and survey operation was carried out at the premises of Shri Mukhesh Sharma, the documents and evidences were forwarded to the Investigation Wing of Hyderabad. Simultaneously, another search and seizure operation were carried out in Madhu Koda Group of cases. Thereafter, the survey operation u/s 133A

Ncc Limited, Hyderabad vs. DCIT, Central Circle-1(1), Hyderabad

Accordingly, we delete the same. Thus, this ground is partly allowed

ITA 73/HYD/2017[2008-09]Status: DisposedITAT Hyderabad31 Jan 2024AY 2008-09

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumar

For Appellant: Shri Vijay Mehta, CA &For Respondent: Shri K. Madhusudan, CIT(DR)

Section 143(1)

M/S. Mukesh Lifestyle Pvt. Ltd., Kolkata vs. I.T.O., Ward - 9(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1614/KOL/2024[2010-2011]Status: DisposedITAT Kolkata31 Jan 2024AY 2010-2011

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Ito, Ward 9(1) M/S Mukesh Lifestyle Pvt. Ltd. Aaykar Bhavan, 5 Th Floor, 180, Jamunalal Bajaj Street, 3Rd Floor, Kolkata-700007, P-7, Chowringhee Square, Vs. West Bengal Kolkata-700069, West Bengal (Appellant) (Respondent) Pan No. Aaecm7276R Assessee By : Shri Abhishek Bansal, Ar Revenue By : Shri Sailen Samadder, Dr Date Of Hearing: 06.01.2025 Date Of Pronouncement : 31.01.2025

For Appellant: Shri Abhishek Bansal, ARFor Respondent: Shri Sailen Samadder, DR

Section 147Section 148Section 68

confirming the order of ld. AO without appreciating the fact that reassessment proceedings were initiated merely by relying on the information from investigation wing without any independent application of mind. 03. The facts in brief are that the assessee field the return of income on 26.09.2010, declaring total income

Bharat Singh Chawda, Dewas vs. The ITO-1, Dewas

The appeal of the assessee is allowed

ITA 234/IND/2023[2011-12]Status: DisposedITAT Indore31 Jan 2024AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyania.Y. 2011-12

Section 148Section 2(14)

capital asset as per sec. 2(14) of the Act. He has further submitted that the AO has alleged as per report of the Investigation Wing that the assessee and his daughter sold agricultural land to one Shri Laxminarayan Jaganath Choudhary whereas the assessee has sold the land in question

Aakruti Ketan Mehta, Mumbai vs. ITO, Ward-35(1)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 53/MUM/2023[2014-2015]Status: DisposedITAT Mumbai31 Jan 2024AY 2014-2015

Bench: SHRI AMIT SHUKLA (Judicial Member), MS. PADMAVATHY S (Accountant Member)

Section 10(38)Section 131Section 143(3)Section 68

deduced that Sunrise Asian Ltd. is bogus / paper company and Shri Vipul Vidur Bhatt is operator of the company. 5. Later on, the investigation wing of the department from the search conducted u/s 132(1) found that, Shri Vipul Vidhur Bhatt is an established entry operator who is involved ... consonance with the financials of the company. He further noted that though in the statement u/s. 132(4) recorded by the Investigation Wing Shri Vipul Vidur Bhatt has confirmed his role in providing bogus long term capital gains as entry / exit provider by floating entry / exit provider companies. However, later

Mayur Kanjibhai Shah, Mumbai vs. ITO Ward 25 (3) (1), Mumbai

In the result, appeal filed by the Assessee stands allowed

ITA 3243/MUM/2023[2012-13]Status: DisposedITAT Mumbai31 Jan 2024AY 2012-13

Bench: Shri.Narender Kumar Choudhry () & Miss. Padmavathy S.()

Section 132Section 132(4)Section 139(1)Section 143(1)Section 147Section 148Section 250Section 69A

which was processed under section 143(1) of the Act on 15/04/2013. 3. Subsequently, on the information received from the DDIT-Tax Investigation Wing 5(4), Mumbai to the effect “ that findings arose from search action under section 132 of the Act carried out in the case of M/s Evergreen

Kamal Kumar Kothari, Kolkata vs. Assistant Commissioner of Income Tax, Mumbai

In the result, appeal of the Assessee stands allowed

ITA 3166/MUM/2023[2014-2015]Status: DisposedITAT Mumbai31 Jan 2024AY 2014-2015

Bench: Shri.Narender Kumar Choudhry () & Miss. Padmavathy S. ()

Section 143(1)Section 143(2)Section 250

shares of M/s Kadwani Securities Ltd and Lifeline Drugs and Pharma Ltd. The Assessing Officer further on the basis of report of the Kolkata Investigation Wing, treated the said shares as penny stock as ingenuine and manipulated and ultimately, treated the sale price of the said share amounting to Rs.1

Manu Stock Broking Private Limited, Kolkata vs. ACIT, Central Circle 1(4), Mumbai

In the result, appeal filed by the Assessee stands allowed

ITA 3085/MUM/2023[2013-14]Status: DisposedITAT Mumbai31 Jan 2024AY 2013-14

Bench: Shri.Narender Kumar Choudhry () & Miss. Padmavathy S.()

Section 143(3)Section 250

seen that a total of Rs.76.67 crore credit into the account. Further, it is also observed from the shell company database available with Investigation Wing Kolkata that the company is among the shell company which is owned, controlled and managed by well known entry operator named Shri Mahendra Kr. Agarwal

M/S Rekha Pinesh Shah, Mumbai vs. CIT-Exmption-30, Mumbai

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

ITA 2306/MUM/2023[2009-10]Status: DisposedITAT Mumbai31 Jan 2024AY 2009-10

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Ms. Umang DedhiaFor Respondent: Smt. Mahita Nair

Section 10(38)Section 143(1)Section 147Section 148Section 250Section 68

Further, these 8000 shares were purchased by the assessee at the cost of Rs. 94,940. From the information received from Investigation Wing, it was noted that M/s Blue Print Securities Ltd is one of the penny stock companies, which have been used for generating bogus long-term capital gains

ACIT, Cir-1(2)(1), Mumbai vs. M/S. Cheryl Advisory Pvt Ltd., Mumbai

In the result, the appeal of the Revenue is partly allowed

ITA 2063/MUM/2023[2013-14]Status: DisposedITAT Mumbai31 Jan 2024AY 2013-14

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry () Assessment Year: 2013-14

For Appellant: Mr. Tanzil Padvekar, AdvFor Respondent: Mr. H.M. Bhatt, Sr. DR

Section 153C

case that the reopening was without appreciating the facts of the case that the reopening was based on the information received from the Investigation Wing which based on the information received from the Investigation Wing which based on the information received from the Investigation Wing which is credible information? ormation ... large number number of of beneficiaries. The assessee assessee was also appearing as one of beneficiary appearing as one of beneficiary and therefore, the investigation wing of income and therefore, the investigation wing of income-tax department , tax department , Ahmadabad sent information to the Assessing Officer of assessee Ahmadabad sent

G.J. Holding Pvt. Ltd., Ludhiana vs. ACIT, C-2, Ludhiana

In the result, the appeal of the assessee stands allowed

ITA 1171/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh30 Jan 2024AY 2011-12

Bench: Shri Sanjay Garg & Shri Vikram Singh Yadavआयकर अपील सं./ Ita No.1171/Chandi/2019 िनधा"रण वष" / Assessment Year : 2011-12 G.J. Holding Pvt. Ltd. बनाम Acit, Central Circle-Ii, Ludhiana C/O G.S. Auto International Limited, G.S. Estate, G.T. Road, Ludhiana. "थायी लेखा सं./Pan No: Aaacg6664K अपीलाथ"/Appellant ""यथ"/Respondent िनधा"रती क" ओर से/Assessee By : Shri P.K. Goel & Sunil Arora, C.As राज"व क" ओर से/ Revenue By : Smt. Amanpreet Kaur, Sr. Dr सुनवाई क" तारीख/Date Of Hearing : 18.12.2023 उदघोषणा क" तारीख/Date Of Pronouncement : 30.01.2024 आदेश/Order Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 04.07.2019 Of The Commissioner Of Income Tax (Appeals)-5, Ludhiana[Hereinafter Referred To As The ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). The Assessee In This Appeal Has Taken The Following 2. Grounds Of Appeal:

For Appellant: Shri P.K. Goel & Sunil Arora, C.AsFor Respondent: Smt. Amanpreet Kaur, Sr. DR

Section 132Section 133ASection 139Section 143(1)Section 147Section 148Section 250

Sharman Estate Pvt. Ltd. 80.00 Lac. 307, 5, Pusa Road, Karol Bagh, New Delh Total 259.40 Lac. Investigation made by the Investigation Wing of the Department has found that assessee is a beneficiary of taking the aforesaid accommodation entries. 4. I have also perused various materials and report from Investigation ... then Ld. A.O. has mentioned at Sr. No. 4 of the reasons recorded that "I have also perused various materials and report from Investigation Wing and on that basis it is observed that the Assessment Year : 2011-12 G.J. Holding Pvt. Ltd. Page 7 of 26 assessee company has introduced

ITO, Ward-1(1), Kol, Kolkata vs. M/S. Illusion Barter Pvt. Ltd., Kolkata

In the result, the appeal filed by the revenue in ITA No

ITA 537/KOL/2023[2015-16]Status: DisposedITAT Kolkata30 Jan 2024AY 2015-16

Bench: Dr. Manish Borad & Sri Anikesh Banerjee

Section 143(3)Section 250Section 271(1)(c)

proceedings in the assessment order. The AO did not provide any copies of the investigation reports, material gathered and the statements recorded by the Investigation Wing to the appellant before concluding that it was a bogus loss incurred on trading of penny stock shares of M/s. Cressanda Solutions Ltd. Therefore ... simply relied upon the general modus operandi adopted by the penny stock companies as discussed by the report of the Kolkatta Investigation Wing. The AO should have conducted an independent investigation into the trading in shares of M/s. Cressanda Solutions Ltd and his findings should have been incorporated

Siddharth Enclave Pvt. Ltd, Kolkata vs. ITO, Ward- 9(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 1302/KOL/2023[2013-14]Status: DisposedITAT Kolkata30 Jan 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1302/Kol/2023 Assessment Year: 2013-14 Siddharth Enclave Pvt. Ltd…..…..…......................…...……………....Appellant Dalmia House, 4, Madan Chatterjee Lane, Kolkata- 700007. [Pan: Aakcs6377D] Vs. Ito, Ward-9(1), Kolkata………………..............................…..…..... Respondent Appearances By: Shri Manoj Tiwari, Ar, Appeared On Behalf Of The Appellant. Shri Bibekananda Madhu, Jcit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 30, 2024 Date Of Pronouncing The Order : January 30, 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 04.10.2023 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. In This Case, The Addition Has Been Made By The Assessing Officer & Further Confirmed By The Cit(A) Of Rs.4,45,337/- With The Allegation That The Said Amount Was Received By The Assessee From Various Circuitous Transactions Originated From One M/S Neelkanth Trading Co. The Assessing Officer Received An Information From The Investigation Wing That The Director Of The Said M/S Neelkanth Trading Co., Shri Sanjiw Kumar Singh Was In Fact An Entry Operator & He Had Provided

Section 147Section 250

received by the assessee from various circuitous transactions originated from one M/s Neelkanth Trading Co. The Assessing Officer received an information from the Investigation Wing that the director of the said M/s Neelkanth Trading Co., Shri Sanjiw Kumar Singh was in fact an entry operator and he had provided I.T.A ... correlating any receipt of the amount with the alleged accommodation entry, simply made the addition observing that since it was the report of the investigation wing that the assessee was a beneficiary, therefore, the addition was warranted. 4. The assessee reiterated its submissions before the CIT(A), however

Smt. Supriya Gupta., Kolkata vs. ITO, WD-30(1), Kolkata

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

ITA 1273/KOL/2023[2009-10]Status: DisposedITAT Kolkata30 Jan 2024AY 2009-10

Bench: Shri Manish Borad&Shri Anikesh Banerjee]

Section 143(3)Section 147Section 148Section 250Section 68

That the Ld. CIT(A) failed to appreciate that the reopening of assessment was solely on the basis-of information received from the investigation wing of the income tax department without even analyzing the records of the regular assessment proceedings and that such reopening of assessment was without independent application

Janhavi Promoters Pvt. Ltd., Kolkata vs. DCIT-6(1), Kolkata.

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

ITA 1260/KOL/2023[2011-12]Status: DisposedITAT Kolkata30 Jan 2024AY 2011-12

Bench: Dr. Manish Borad & Sri Anikesh Banerjee

Section 131Section 147Section 250Section 68

onus of credit worthiness as well as genuineness of transaction in this case. In view of the above discussion, recorded reason and information from investigation wing as well as submission made by the assessee I am compelled to conclude that in this case assessee has not adduced sufficient evidence

DCIT, Central Circle-1, Coimbatore vs. M/S. Sri Arumuga Sugars Ltd, Coimbatore

The appeals stand dismissed

ITA 673/CHNY/2023[2017-18]Status: DisposedITAT Chennai30 Jan 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jmand Hon’Ble Shri Manoj Kumar Aggarwal, Am

Section 131Section 143(2)Section 143(3)Section 68

appreciate that Shri V. Sathish, one of the directors of the company admitted in his sworn statement recorded during the enquiry conducted by Investigation wing that there was no evidence for the collection of cash from the farmers. 2.3. The Ld. CIT(A) failed to note that the assessee ... filed ITR and Audit Report only upto AY 2014-15 on the date of enquiry by Investigation wing. Only after demonetization and after the enquiry was made by Investigation wing, the ITRs were filed for AYs 2015-16, 2016-17 and 2017-18. Similarly annual returns before Registrar of Companies

DCIT, Central Circle-1, Coimbatore vs. M/S. Sri Arumuga Sugars Ltd, Coimbatore

The appeals stand dismissed

ITA 672/CHNY/2023[2016]Status: DisposedITAT Chennai30 Jan 2024

Bench: Hon’Ble Shri V. Durga Rao, Jmand Hon’Ble Shri Manoj Kumar Aggarwal, Am

Section 131Section 143(2)Section 143(3)Section 68

ITO Ward - 4, Rohtak vs. Surender Dalal, Rohtak

In the result, appeal of the Assessee is partly allowed as

ITA 7714/DEL/2019[2009-10]Status: DisposedITAT Delhi30 Jan 2024AY 2009-10

Bench: Shri G.S. Pannu, Hon’Ble & Shri Challa Nagendra Prasadआ.अ.सं/.I.T.A No.7714/Del/2019 िनधा"रणवष"/Assessment Year: 2009-10 बनाम Ito, Surender Dalal, Ward-4, Vs. Dalal Bhawan, Aayakar Bhawan, Rohtak, Haryana Near Petrol Pump, Gohana Road, Rohtak, Haryana. Pan No.Aqlps2166C अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.7490/Del/2019 िनधा"रणवष"/Assessment Year: 2009-10 बनाम Surender Dalal, Ito, Dalal Bhawan, Vs. Ward-4, Near Petrol Pump, Aayakar Bhawan, Gohana Road, Rohtak, Haryana Rohtak, Haryana. Pan No.Aqlps2166C अपीलाथ" Appellant ""यथ"/Respondent

Section 147Section 148Section 151Section 69

mere suspicion or to make further investment. Placing reliance on the following decisions, Ld. Counsel submits that reassessment merely on the basis of Investigation Wing is not valid: 1. CIT vs. Kamdhenu Steel & Alloys Ltd. 248 CTR 33 (Del.); 2. CIT vs. Multiplex Trading & Industrial Co. Ltd. 63 taxmann.com ... Delhi High Court in the case of Pr. CIT vs. RMG Polyvinyl (I) Ltd. (supra) held that the information received from the Investigation Wing cannot be said to be tangible material per se without a further enquiry being undertaken by the AO and the AO deprived himself of that opportunity

Surender Dalal, Rohtak vs. ITO Ward - 4, Rohtak

In the result, appeal of the Assessee is partly allowed as

ITA 7490/DEL/2019[2009-10]Status: DisposedITAT Delhi30 Jan 2024AY 2009-10

Section 147Section 148Section 151Section 69

Smt. Hema Ramesh Jain, Thane vs. ITO Ward - 1(5), Kalyan

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

ITA 2966/MUM/2023[2014 - 15]Status: DisposedITAT Mumbai29 Jan 2024

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.2966/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2014-15) Smt. Hema Ramesh Jain बिधम/ Ito, Ward-1(5) 1St Floor, Mohan Plaza, Flat No. 1501, Bldg 2-Greens, Vs. Vasant Lawns, Voltas Wayale Nagar, Compound, Nr Majiwada Khadakpada, Kalyan Flyover, Thane (West)- (W), Maharashtra- 400601. 421301. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Afdpj0407L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Ajay R. Singh Revenue By: Shri S. N. Kabra (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 05/01/2024 घोषणा की तारीख /Date Of Pronouncement: 29/01/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/(Nfac), Delhi Dated 08.08.2023 For The Assessment Year 2014-15. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Upholding The Disallowance Made By Ao Regarding The Claim Of Long Term Capital Gain (Ltcg) Of Rs.23,37,135/- & Taxing The Entire Sale Consideration Of Rs.25,12,020/- On Sale Of Shares Of M/S. Sunrise Asian Ltd. (Hereinafter “M/S. Sunrise”).

For Appellant: Shri Ajay R. SinghFor Respondent: Shri S. N. Kabra (Sr. AR)

Section 10(38)Section 132(4)Section 391Section 44A

scrip M/s. Sunrise was a penny-stock and for coming to such a conclusion he referred to the investigation report prepared by Investigation Wing of the Department (Kolkata) wherein the modus-operandi of persons like assessee had indulged in converting their unaccounted money by way of transacting in penny ... thus it can be seen that AO has drawn adverse view against the claim of LTCG only on the basis of general report of Investigation Wing, Kolkata wherein it is stated that scrip of M/s Sunrise Asian Ltd is a penny stock, and thus the AO erred in concluding that