“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

DCIT, CC- 19, New Delhi vs. Sharp Mint Ltd., New Delhi

In the result, all the appeals filed by the Revenue are dismissed

ITA 1088/DEL/2021[2012-13]Status: DisposedITAT Delhi12 Jan 2024AY 2012-13

Bench: Shri Shamim Yahya & Shri Anubhav Sharma

For Appellant: Shri Vinod Kumar Bindal, CAFor Respondent: Ms. Sapna Bhatia, CIT DR

Section 132Section 133ASection 153ASection 37

that a search & seizure and survey operation under section 132/133A of the Income-tax Act, 1961 (for short 'the Act') was conducted by the Investigation Wing of the Department on 07.04.2017 in Sharp Group of cases. The assessee’s premise was also covered under section

M/S. Trinity Global Enterprises Ltd., Jaipur vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2122/DEL/2016[2011-12]Status: DisposedITAT Delhi12 Jan 2024AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Rajkumar Gupta, CA &For Respondent: Sh. Subhra J. Chakraborty, CIT-DR

Section 133(6)Section 142(1)Section 40A(2)(b)Section 68

course of proceedings. The Assessing Officer also relied on the statement of Sh. Mukesh M. Choksi, Mumbai whose statement has been recorded by the Investigation Wing of Mumbai wherein Sh. Mukesh M. Choksi has accepted that he is involved in providing bogus entries of share application from the concerns namely

Samrat Finvestors Private Limited., Kolkata vs. ITO, Ward- 10(2), Kolkata.

In the result, appeal of the assessee is allowed

ITA 840/KOL/2023[2014-15]Status: DisposedITAT Kolkata11 Jan 2024AY 2014-15

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 840/Kol/2023 Assessment Year: 2014-15 Samrat Finvestors Private Limited Income Tax Officer, Ward – 10(2), 20/1, Maharshi Debendra Vs Kolkata 2Nd Floor, Room No. 13A Kolkata - 700007 [Pan : Aadcs4698G] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Soumitra Choudhury, A/R Revenue By : Shri B.K. Singh, Jcit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 14/12/2023 घोषणा क" तारीख /Date Of Pronouncement: 11/01/2024 आदेश/O R D E R Per Shri Rajesh Kumar: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi, [Hereinafter The “Ld. Cit(A)”] Dt. 27/06/2023, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2014-15. 2. The Assessee In The Instant Appeal Has Raised Two Effective Issues In The Various Grounds Before Us Which Are Summed Up As Under:- (I) That The Ld. Cit(A) Has Erred On Facts & In Law In Confirming The Disallowance Of Rs.3,98,50,208/- As Made By The Assessing Officer On Account Alleged Bogus Loss In Share Trading & In F&O Segment. (Ii) The Ld. Cit(A) Has Erred On Facts & In Law In Upholding The Addition Of Rs.11,58,944/- As Made By The Assessing

For Appellant: Shri Soumitra Choudhury, A/RFor Respondent: Shri B.K. Singh, JCIT, Sr. D/R

Section 133(6)Section 14ASection 250

price rigging and manipulation on the stock exchange platform. The ld. Assessing Officer also referred to the enquiries conducted by the SEBI and the Investigation Wing of the Deptt in which it was found that some brokers have manipulated and rigged the share prices in order to give undue benefit ... assessee. Thereafter the Assessing Officer referred to the show cause notice dated 02/12/2016 given to the assessee and informing him about the investigation Wing’s report in which these shares were referred to as Penny stocks. Finally the Assessing Officer treated the loss from share trading and from

Nalanda Builders Pvt. Ltd., Kolkata vs. D.C.I.T., Central Circle - 2(1), Kolkata

In the result the appeal of the assessee is allowed

ITA 763/KOL/2022[2013-2014]Status: DisposedITAT Kolkata11 Jan 2024AY 2013-2014

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 763/Kol/2022 Assessment Year: 2013-14 Nalanda Builders Pvt. Ltd. Dcit, Central Circle-2(1), Kolkata 5, Sree Charan Sarani Vs Bally Howrah – 711201 (West Bengal) [Pan : Aabcn7736Q] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Soumitra Choudhury, A/R Revenue By : Shri P.P. Barman, Addl. Cit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 30/11/2023 घोषणा क" तारीख /Date Of Pronouncement: 11/01/2024 आदेश/O R D E R Per Shri Rajesh Kumar: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre, Delhi, [Hereinafter The “Ld. Cit(A)”] Dt. 23/11/2022, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2013-14. 2. The Issues Raised In Ground Nos. 2 To 4 Is Against The Confirmation Of Addition As Made By The Assessing Officer On Account Of Difference Between The Value Taken By The Assessee & The Fair Market Value (Fmv) U/S 50C Of The Act. 3. The Facts In Brief Are That During The Year, The Assessee Sold Two Flats For An Aggregate Consideration Of Rs.3,00,00,000/- & Accordingly Addition Of Rs.3,26,37,314/- Was Made To The Income Of The Assessee. In 2

For Appellant: Shri Soumitra Choudhury, A/RFor Respondent: Shri P.P. Barman, Addl. CIT, Sr. D/R

Section 131Section 133(6)Section 250Section 50CSection 56(2)(x)

carrying out an independent verification into these transactions entered into by the assessee during the year, the Assessing Officer has simply relied on the investigation Wing’s report as well as on the SEBI investigation in which the SEBI has prepared a list of 84 shares in which manipulations ... parties to corroborate the allegation as made in the assessment order or to disbelieve the evidences and merely relied on the report of the investigation wing and SEBI. The ld. A/R submitted that though the possibility and chances are there that unscrupulous elements may have indulged in taking undue advantages

Mudita Chaturvedi, New Delhi vs. ACIT, Central Circle-20, Delhi

In the result, the appeal of the assessee is allowed

ITA 601/DEL/2023[2019-20]Status: DisposedITAT Delhi11 Jan 2024AY 2019-20

Bench: Sh. N. K. Billaiya & Sh. Yogesh Kumar U.S.Assessment Year: 2019-20 Mudita Chaturvedi Vs. Acit C-26, Defence Colony, New Central Circle – 20 Delhi-110024 Delhi Pan No.Alopc6621J (Appellant) (Respondent) Appellant By Sh. Gaurav Jain, Advocate Sh. Sudarshan Roy, Advocate Respondent By Ms. Pooja Swaroop, Sr. Dr Date Of Hearing: 08/01/2024 Date Of Pronouncement: 10/01/2024

Section 132Section 69

perused. 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. 4. The locker of the assessee at New Delhi Vaults Limited was also covered

Akik Marketing India Pvt Ltd, New Delhi vs. ITO Ward - 2(1), New Delhi

ITA 4559/DEL/2019[2010-11]Status: DisposedITAT Delhi11 Jan 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Anubhav Sharmaassessment Year : 2010-11 Akik Marketing India Pvt. Ltd. Vs. Ito, N-39, Ground Floor, Ward 2(1), Greater Kailash-I, New Delhi New Delhi-110048 Pan : Aaaca6579K (Appellant) (Respondent) Assessee By : Shri Gurjeet Singh, Ca & Shri Shantanu Jain, Adv. Revenue By : Shri Kanav Bali, Sr. Dr

For Appellant: Shri Gurjeet Singh, CA &For Respondent: Shri Kanav Bali, Sr. DR

Section 147Section 68

reason recorded dt. 29/03/2017 AO has not applied his mind as the information received by AO is of Rs 5,61,85,006/- from Investigation wing wherein the detail contained double entries too and case has been reopened on the basis that assessee company has shown receiving unsecured loan from ... where statement of searched persons is brought on records qua seized papers which vitiate the entire exercise. Moreover only one sided version of investigation wing on seized material that too which is not found from assessee's possession is relied and that cannot be made as valid basis to infer

DCIT, New Delhi vs. I Energizer Holdings Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 4653/DEL/2015[2011-12]Status: DisposedITAT Delhi11 Jan 2024AY 2011-12

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

Jurisdictional High Court Facts: 8. A search & seizure operation u/s 132 of the Income Tax Act, 1961 was conducted by the Investigation Wing of the Income Tax Department on 22.03.2012 in M/s Focus Energy CO Nos. 353 to 356 & Others/Del/2015 Rolland Enterprises Ltd. & Others . Group of cases. In the course

DCIT, New Delhi vs. I Energizer Holdings Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 4652/DEL/2015[2010-11]Status: DisposedITAT Delhi11 Jan 2024AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

DCIT, New Delhi vs. I Energizer Holdings Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 4651/DEL/2015[2009-10]Status: DisposedITAT Delhi11 Jan 2024AY 2009-10

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

DCIT, New Delhi vs. I Energizer Holdings Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 4650/DEL/2015[2008-09]Status: DisposedITAT Delhi11 Jan 2024AY 2008-09

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

The Income Tax Officer, Ward-1(1)(1), Ahmedabad vs. M/S. Aashna Developers Pvt. Ltd., Ahmedabad

In the result, appeal of the Revenue is hereby dismissed

ITA 417/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad10 Jan 2024AY 2018-19

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyalआयकरअपीलसं./Ita No. 417/Ahd/2022 धििाधरणवरध/Asstt. Year: 2018-2019 Income Tax Officer, M/S Aashna Developers Pvt. Ltd., Ward-1(1)(1), Vs. 301, Satkar Complex, Ahmedabad. Off C.G Road, Near Lal Bunglow, Ahmedabad-380006. Pan: Aabca9995Q

For Appellant: Shri S.N Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CIT.D.R

Section 132(4)Section 68

Appeals) allowed the appeal of the assessee stating: "Thus, the entire disallowance in this case is based on third party information gathered by the Investigation Wing of the Department, which have not been independently subjected to further verification by the AO who has not provided the copy of such statements

Coral Venture Private Limited, Mumbai vs. Assistant Commissioner of Income Tax 12(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2483/MUM/2023[2010-2011]Status: DisposedITAT Mumbai10 Jan 2024AY 2010-2011

Bench: Shri Om Prakash Kant () & Shri Sandeep Singh Karhail () Assessment Year: 2010-11

For Appellant: Mr. Subhash Chhajed and Mr. Hitesh RathodFor Respondent: Mr. H.M. Bhatt, Sr. DR

Section 143(3)Section 147Section 148Section 151

quashed and annulled 2. Briefly stated facts of the case are that on receipt of e are that on receipt of information from the Investigation Wing of Income information from the Investigation Wing of Income-tax Department, tax Department, Kolkata, the Assessing Officer recorded reasons to believe that Kolkata ... bogus entries to the beneficiaries beneficiaries through their bank accoun bank account No. 411010200002622. The said letter of the . The said letter of the investigation wing investigation wing mentioned that assessee company had enjoyed bogus entries to the mentioned that assessee company had enjoyed bogus entries to the mentioned that

Shri Balkrishna Gajanan Thopte, Thane vs. DCIT Cir 2, Kalyan

ITA 3380/MUM/2019[2014-15]Status: DisposedITAT Mumbai10 Jan 2024AY 2014-15

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 132Section 142(1)Section 143(2)Section 147Section 148

shares, sales bills of LFC Securities Pvt. Ltd. have been filed. 8. Assessing Officer has analysed the details of investigation carried out by the Investigation Wing and discussed the various parameters as Modus operandi, amalgamation of unlisted companies with listed entity preferential allotment of equity shares, allotment of bonus shares ... questions related with capital gains so earned by him during the year under consideration. As per the modus operandi detected by the Kolkata Investigation wing, the assessee has taken the route of merger and amalgamation method. 12. Assessing Officer by relying on various judicial pronouncements came to the conclusion with

Mysore Finlease Private Limited, New Delhi vs. ACIT, Central Circle-13, New Delhi

In the result, all the appeals of the assessee are allowed and appeal of the revenue in ITA No

ITA 8821/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Jan 2024AY 2011-12

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us

Section 132

Shri Deepak Agarwal and Shri Mukesh Kumar and other cases of Mukesh Kumar Group and Deepak Agarwal Group based at Delhi. According to the investigation wing, these groups were found to be interconnected with each other and with some group of entry operators providing accommodation entries to beneficiaries ... Central Range, the ld. JCIT is involved in the search assessment proceedings right from the time of receipt of appraisal report from the Investigation Wing and is involved with the Ld. AO from time to time while issuing various questionnaires to the assessee. The ld. JCIT in Central Range also

DCIT, New Delhi vs. Iservices Investments Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 5396/DEL/2015[2011-12]Status: DisposedITAT Delhi10 Jan 2024AY 2011-12

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

DCIT, New Delhi vs. M/S Wickwood Development Ltd., New Delhi

ITA 3357/DEL/2015[2009-10]Status: DisposedITAT Delhi10 Jan 2024AY 2009-10

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

Section 153CSection 6(3)(ii)

Jurisdictional High Court Facts: 8. A search & seizure operation u/s 132 of the Income Tax Act, 1961 was conducted by the Investigation Wing of the Income Tax Department on 22.03.2012 in M/s Focus Energy Group of cases. In the course of search operation, certain incriminating documents pertaining to the assessee

DCIT, New Delhi vs. M/S Wickwood Development Ltd., New Delhi

In the result, the Cross Objections of the assessees are allowed and consequently the appeals of the revenue are liable to be dismissed

ITA 3356/DEL/2015[2008-09]Status: DisposedITAT Delhi10 Jan 2024AY 2008-09

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

DCIT, New Delhi vs. M/S. Newbury Holding Two Ltd., New Delhi

ITA 3128/DEL/2015[2010-11]Status: DisposedITAT Delhi10 Jan 2024AY 2010-11

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

Section 153CSection 6(3)(ii)

Jurisdictional High Court Facts: 8. A search & seizure operation u/s 132 of the Income Tax Act, 1961 was conducted by the Investigation Wing of the Income Tax Department on 22.03.2012 in M/s Focus Energy Group of cases. In the course of search operation, certain incriminating documents pertaining to the assessee

M/S. Delighted Holdings (P) Ltd., Kolkata vs. Dcir, Cir-8(2), Kolkata

In the result, the appeal of the assessee is allowed

ITA 624/KOL/2023[2011-12]Status: DisposedITAT Kolkata08 Jan 2024AY 2011-12

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 143(1)Section 147Section 148

aside. In this case, the assessment was completed u/s 143(3) and thereafter the AO received the information from Investigation Wing that the assessee has received bogus loans in the form of accommodation entries and on that basis the case of the assessee was reopened. In the case of Rajiv ... order of authorities below by submitting that these are the accommodation entries as is revealed by the searches and surveys conducted by the investigation wing of the revenue on the hawala operators which revealed the cash deposited into the accounts of the Hawala operators and further issuing cheques for accommodation

Suksham Finlease & Investment P.Ltd, New Delhi vs. ITO, Ward-24(3), New Delhi

In the result, appeal of the assessee is allowed

ITA 8321/DEL/2018[2009-10]Status: DisposedITAT Delhi08 Jan 2024AY 2009-10

Section 147Section 151Section 234BSection 69C

after adjustment of brought forward losses of Rs.3,39,455/-. Subsequently, based on information received by the Ld. AO from Income Tax Investigation Wing of Ahmedabad that the assessee is one of the beneficiary clients who had taken contrived losses amounting to Rs.3,57,95,948/- by using Client Code ... racket of brokers and beneficiary foul played and misused CCM for tax evasion. 6. An action was also undertaken by Alunedabad Directorate of Investigation Wing The wing had called for reports from different exchanges, and the data was duly analysed. After analysis, 12 Brokers and their related entities / main clients