“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

Ravindra Kumar Agarwal, Hyderabad vs. Asst. Commissioner of Income Tax(OSD), Ward-9(2), Hyderabad

In the result, all the appeals filed by the respective assessees are dismissed

ITA 1707/HYD/2019[2015-16]Status: DisposedITAT Hyderabad29 Nov 2023AY 2015-16

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumarappeal In Ita Assessee Revenue A.Y No 1707/Hyd/2019 Shri Ravindra Kumar A.C.I.T ( Ods ) 2015-16 (Huf) Agarwal, Ward 9 (2) Hyderabad Hyderabad Pan:Aaihr4527D 901/Hyd/2019 Smt. Priya Darshini Income Tax 2015-16 Kimtee Officer Hyderabad Ward-5(1) Pan:Acfpk7087G Hyderabad 1706/Hyd/2019 Smt. Tulsidevi Agarwal, A.C.I.T ( Ods ) 2015-16 Hyderabad Ward 9 (2) Hyderabad Pan:Acppb6958H Assessee By: Shri K.C. Devadas, Ca Revenue By: Shri Ch V Gopinath, Cit(Dr)

For Appellant: Shri K.C. Devadas, CAFor Respondent: Shri CH V Gopinath, CIT(DR)

Section 10(38)

Directorate of Investigation which is not applicable to the facts of the appellant's case and has just followed the reports of the Investigation Wing and the general observations of the SEBI which were not applicable to the facts of the appellant's case and therefore ... selection of scrutiny is to examine the suspicious Capital Gains earned by the assessee from transactions in penny stock (inputs given by the Investigation Wing of the Department, Kolkata). 6. On verification of the information filed by the AR of the assessee, the Assessing Officer observed that the assessee

Tulsidevi Agarwal, Hyderabad vs. Asst. Commissioner of Income Tax (OSD), Ward-9(2), Hyderabad

In the result, all the appeals filed by the respective assessees are dismissed

ITA 1706/HYD/2019[2015-16]Status: DisposedITAT Hyderabad29 Nov 2023AY 2015-16

For Appellant: Shri K.C. Devadas, CAFor Respondent: Shri CH V Gopinath, CIT(DR)

Section 10(38)

Shankar Lal Agarwal, Hyderabad vs. Income Tax Officer, Ward-16(2), Hyderabad

In the result, appeal of the assessee is dismissed

ITA 150/HYD/2018[2014-15]Status: DisposedITAT Hyderabad29 Nov 2023AY 2014-15

Bench: Shri K. Narasimha Chary

For Appellant: Smt. S. Sandhya, ARFor Respondent: Ms. P. Sumitha, DR

Section 10(38)

effect that the shares of M/s. Unno Industries Ltd. are found out to be penny stocks consequent to search operations conducted by the Investigation Wing, Kolkata. In the investigation report, the modus operandi of the transactions was discussed in detail. 4. On a thorough examination of the facts, learned Assessing ... shares have not been traded for the past months. The trend in the movement of share prices of penny stocks was analysed by the Investigation Wing in its report and the movement of price of the above scrip is in tune with that trend. 5. Learned Assessing Officer further found

R.C. Suppliers Pvt. Ltd., Kolkata vs. D.C.I.T., Circle - 1(1), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 64/KOL/2023[2014-2015]Status: DisposedITAT Kolkata29 Nov 2023AY 2014-2015

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.64/Kol/2023 Assessment Year: 2014-15 R. C. Suppliers Pvt. Ltd………...................................................……Appellant 161/1, M.G. Road, Kolkata – 700007. [Pan: Aabcr2904A] Vs. Dcit, Circle-1(1) Kolkata.............................……........……...…..…..Respondent Appearances By: Shri Amit Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri P.P. Barman, Addl. Cit- Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : September 14, 2023 Date Of Pronouncing The Order : November 29, 2023 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 01.12.2022 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. That, On The Facts & Circumstances Of The Case, The Learned National Faceless Appeal Centre, Delhi Erred In Passing Ex-Parte Order Dated 1St December, 2022 Under Section 250 Of The Income Tax Act, 1961 In The Case Of Appellant Assessee Company For The Assessment Year 2014-15 In Violations Of The Principles Of Natural Justice. 2. That, On The Facts & Circumstances Of The Case, The Learned National Faceless Appeal Centre, Delhi Erred In Confirming The Arbitrary

Section 250

Services Limited on the alleged ground that the said transactions were the result of accommodation entries relying on the unreliable report of the Kolkata Investigation wing without allowing an opportunity of rebuttal, cross-examination to the Assessee Company. 5. That the Learned National Faceless Appeal Centre, Delhi erred in arbitrarily ... First Financial Services Ltd. which was a penny stock company. The Assessing Officer in this respect took notice of the report of the Investigation Wing, Kolkata, wherein, the modus operandi adopted by the entry providers in the case of penny stock companies has been discussed and it has been found

DCIT, Central Circle-4(3), Mumbai vs. Mangal Royal Jewels Pvt. Ltd., Mumbai

In the result, the appeal filed by the revenue is dismissed and the appeal filed by the asseees is allowed

ITA 3274/MUM/2022[2017-18]Status: DisposedITAT Mumbai29 Nov 2023AY 2017-18

Bench: Shri Br Baskaranshri Pavan Kumar Gadalem/S Mangal Royal Vs. Acit-Cc-1(3), Jewels Pvt Ltd. 29C, Room No.905, 9Thfoor, Shyam Kamal Co- Old Cgo Bldg,Annexe, Operative Housing M.K. Road, Society Ltd, Agarwal Mumbai-400020. Market, M.G. Road, Vile Parle (E), Mumbai-400057. Pan/Gir No. : Aaicm0846R Appellant .. Respondent Dy.Cit-Cc 4(3), Vs. M/S Mangal Royal Central Range-4, Jewels Pvt Ltd. 29C, Room No.1921, Shyam Kamal Co- 19Th Floor, Air India Operative Housing Bldg, Nariman Point, Society Ltd, Agarwal Mumbai-400021. Market, M.G. Road, Vile Parle (E), Mumbai-400057 Pan/Gir No. : Aaicm0846R Appellant .. Respondent Appellant/Respondent Mr.Poojan Mehta.Ar By : Respondent/Appellant By Mr.Prakash Kishinchandani.Dr Date Of Hearing 08.09.2023 Date Of Pronouncement 28.11.2023

Section 131Section 132Section 143(1)

further stated before the AO that during Search & Seizure action carried out at the premises of the appellant on 08.04.2017 by the Investigation Wing, Mumbai, the search team has physically verified the stock of M/s Mangal Royal Jewels Pvt Ltd kept at its showroom. The stock was also valued ... observations, the appellant has argued before the undersigned that- 8.6.1 During the Search & Seizure action carried out at appellant's premises on 08.04.2017 by Investigation Wing, Mumbai, the search team had physically verified the entire stock. The stock available at the time of search was also valued by an independent

Mangal Royal Jewels Pvt. Ltd., Mumbai vs. ACIT, Central Circle-1(3), Mumbai

In the result, the appeal filed by the revenue is dismissed and the appeal filed by the asseees is allowed

ITA 3062/MUM/2022[2017-18]Status: DisposedITAT Mumbai29 Nov 2023AY 2017-18

Section 131Section 132Section 143(1)

Rajeshbhai D. Dungarani (HUF), Surat vs. Income Tax Officer, Ward -3(2)(3), Surat

In the result, the substantial ground of appeal as framed by me is allowed

ITA 561/SRT/2023[2011-12]Status: DisposedITAT Surat29 Nov 2023AY 2011-12

Bench: Shri Pawan Singh(Virtual Hearing) Rajeshbhai D Dungarani (Huf), I.T.O., 15-A, Sundaram Park Society, Ward-3(2)(3), Vs. Dabholi Road, Surat-395004 Surat. (Gujarat) Pan No. Aakhr 4970 E Appellant/ Assessee Respondent/ Revenue

Section 143(2)Section 148Section 254(1)Section 5

from scrip of M/s Splash Media & Infra Ltd. which is engaged in providing accommodation entry as per the information that investigation wing of Calcutta carried out investigation that certain bogus companies are indulging in providing entries of penny stock and that the assessee is beneficiary of such penny stock ... scrips on 18/01/2011 for a consideration of Rs. 8,97,000/-, thus earned short term capital gain of Rs. 3,43,200/-. The Investigation Wing identified M/s Splash Media & Infra Ltd. as one of the penny stock entity for providing bogus entry. The assessee filed its reply dated 17/12/2018

Pravinkumar Pratapchand Shah, Mumbai vs. Income Tax Officer 34(2)(7), Kautilya Bhavan

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

ITA 2576/MUM/2023[2012-13]Status: DisposedITAT Mumbai27 Nov 2023AY 2012-13

Bench: Shri Pavan Kumar Gadale & Ms. Padmavathy Spravinkumarpratapchand Vs Ito, Ward 34(2)(7), Shah,3Rd Floor, 13/15, 746, Kautilya Bhavan, Anantwadi, Atmaram C-41, To C-43, Merchant Road, G-Block Bkc, Chira Bazar, Bandra (E) Mumbai-400002. Mumbai-400051. Pan/Gir No. : Aapps9017G Appellant .. Respondent

For Appellant: Shri Lawanya Rajpurohit.ARFor Respondent: Shri Joginder Singh,. Sr.DR

dealt on the various facts of Pravinkumar Pratapchand Shah, Mumbai. transactions and the price trend on stock exchange, the report of the Kolkata investigation wing and has doubted the earning of Short Term Capital loss and observed that there is no correlation of rise and fall of the share price

Jitendra Udaylal Jain, Mumbai vs. National Faceless Assessment Centre, Delhi

In the result, appeals filed by the assessee is allowed

ITA 2042/MUM/2023[2012-2013]Status: DisposedITAT Mumbai24 Nov 2023AY 2012-2013

Bench: Shri Narender Kumar Choudhry, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blejitendra Udaylal Jain V. National Faceless Assessment Centre(Nfac) C/O. M/S. Alankar Jewellers Shop Delhi No.1 Municipal Building R.A. Kidwai Road, Wadala Mumbai- 400037 Pan: Aabpj5480E (Appellant) (Respondent) Assessee Represented By : Shri. Vimal Punmiya Department Represented By : Shri. Ujjawal Kumar Chavan

Section 10(38)Section 131Section 143(2)Section 148Section 250

this transaction as suspicions because of huge claim of capital gains earned by the assessee. 4. By relying on the findings of the Kolkata Investigation Wing wherein they have analysed 84 penny stocks and heavily relied on their findings and found that M/s. Rander Corporation Ltd., is one among them ... whom the shares were being sold. 15. Ld.AR of the assessee submitted that assessment was made on the basis of material supplied by the Investigation Wing in respect of the survey under the Income Tax Act carried out on M/s Rander Corporation Pvt. Ltd and third person one Mr. Natwar

ITO Ward-32(1)(1), Mumbai vs. Dharam Hasmukhbhai Jagda, Mumbai

ITA 446/MUM/2021[2014-15]Status: DisposedITAT Mumbai24 Nov 2023AY 2014-15

Bench: Shri Kuldip Singh, Jm & Shri S Rifaur Rahman, Am Dharam Hasmukhbhai Jagda Income Tax Officer 32(1)(1) 154/155, Santvani Bld., Lic R. No. 703, Kautilya Bhavan, Colony, Besides Upadhya Bkc, Bandra (E), Vs. Dairy,Birivali(W), Mumbai-400051 Mumbai-400092 (Appellant) (Respondent) Pan No. Aglpj0431B Assessee By : None Revenue By : Smt. Mahita Nair, Date Of Hearing: 07.09.2023 Date Of Pronouncement : 24.11.2023

For Appellant: NoneFor Respondent: Smt. Mahita Nair

Section 10(38)Section 143(3)Section 271(1)(c)Section 68

penalty levied by the AO u/s 271(1)(c) of the Act of Rs. 6,42,880/- without appreciating the explicit findings of the investigation wing and corroborated by the enquiries made by the AO." 4. "The appellant prays that the order of the Ld. CIT(A) on the above

Shweta Shyam Pedamkar, Mumbai vs. ITO Ward-2(4) Thane, Thane

In the result, appeal filed by the Assessee stands allowed for statistical purpose

ITA 2449/MUM/2023[2012-13]Status: DisposedITAT Mumbai23 Nov 2023AY 2012-13

Bench: Shri B.R. Baskaran () & Shri.Narender Kumar Choudhry ()

Section 144Section 147Section 250

impugned order till 20th June, 2023. It is also a fact that vide summon dated 13/10/2017, husband of the Assessee was summoned by the Investigation Wing of Income-tax Department at Ballard Estate and his statement was also recorded wherein he has informed the department that the share transactions

Uttam M Jain HUF, Mumbai vs. Assessing Officer - Ward 42(1)(4), Kautilya Bhavan

In the result, appeal filed by the Assessee stands allowed

ITA 2427/MUM/2023[2012-13]Status: DisposedITAT Mumbai23 Nov 2023AY 2012-13

Bench: Shri.Narender Kumar Choudhry () & Shri S Rifaur Rahman ()

Section 143(1)Section 147Section 148Section 250Section 68Section 69C

documents which were considered by the Assessing Officer; however, not found acceptable and the Assessing Officer ultimately, “while relying upon the findings of the Investigation Wing (referred to above) and by making analysis of transactions and the order of the SEBI qua taking action gainst the scrip M/s Nivya Infrastructure

Sulochana Godhwani, Mumbai vs. Income Tax Officer-10(3)(3), Mumbai

In the result, appeal filed by the Assessee stands allowed

ITA 2245/MUM/2023[2009-2010]Status: DisposedITAT Mumbai23 Nov 2023AY 2009-2010

Bench: Shri.Narender Kumar Choudhry ()

Section 133(6)Section 143(1)Section 147Section 148Section 250Section 68

return of income on dated 31/12/2009, which was processed under section 143(1) of the Act . Subsequently, on the basis of information received from Investigation Wing to the effect “that the search and survey action carried out in the premises of Shri Pravin Kumar Jain and his group wherein

M/S Ankur Power Projects Pvt. Ltd., Mumbai vs. ITO 15(1)(1), Mumbai

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

ITA 3291/MUM/2019[2011-12]Status: DisposedITAT Mumbai23 Nov 2023AY 2011-12

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 132Section 132(4)Section 143(1)Section 143(3)Section 148Section 68

assessee in an independent manner as contemplated u/s 147 of the Act, i.e. the Assessing Officer has simply accepted the information given by the Investigation Wing and concluded that there was escapement of income without making any independent enquiry. Accordingly, the learned AR submitted that that the satisfaction reached

DCIT Circle-20, Delhi vs. Mahabir Singh Mittal, Delhi

In the result, appeal and cross objection both are dismissed

ITA 829/DEL/2022[2011-12]Status: DisposedITAT Delhi23 Nov 2023AY 2011-12

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: Shri Amul sinha, AdvFor Respondent: Shri Subhra Jyoti chakraborty, CIT(DR)

Section 142ASection 153ASection 56(2)(vii)Section 69A

course of appeal proceedings.” 2. Briefly stated the facts of the case are that a search & seizure and survey operation was conducted by the Investigation Wing of the Department on 19.12.2017 in PAN Group of cases. The assessee’s premises were also covered in the search. Accordingly, statutory notices

ACIT, Central Circle- 13, New Delhi vs. Lizer Cylinders Ltd., Mumbai

In the result, the appeal of the Revenue for AY 2011-12 and 2012-13

ITA 7309/DEL/2017[2011-12]Status: DisposedITAT Delhi23 Nov 2023AY 2011-12

Bench: Shri N.K. Billaiya & Ms. Astha Chandraastt. Year: 2011-12 & Asstt. Year: 2012-13 Acit, Vs. Lizer Cylinders Ltd. Central Circle-13, 205, 2Nd Floor, New Delhi. Samarpan, Chakala Link Road, Andheri East, Mumbai Maharashtra. Pan Aabcl3501H (Appellant) (Respondent)

For Appellant: Shri Salil Aggarwal, Sr. AdvocateFor Respondent: Shri P.N. Barnwal, CIT-DR

Section 131Section 132(1)Section 143(2)Section 143(3)Section 153ASection 250(4)Section 68

drew our attention to para 3.1 of Ld. AO’s order wherein he mentioned about the investigation/enquiry conducted by the Investigation wing in J.P. Minda Group of cases revealing that the investing entities did not have any real income and therefore their creditworthiness was in doubt. He further submitted that ... accordingly dismissed.” 42. Further, the learned AO and Ld. CIT DR have also drawn heavy support from the investigation report of the Kolkata Investigation Wing and the statement of Sh. Rajesh Agrawal. On going through the assessment order and the remand report, we find that the statement of Sh. Rajesh

ACIT, Central Circle- 13, New Delhi vs. Lizer Cylinders Ltd., Mumbai

In the result, the appeal of the Revenue for AY 2011-12 and 2012-13

ITA 7282/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Nov 2023AY 2012-13

For Appellant: Shri Salil Aggarwal, Sr. AdvocateFor Respondent: Shri P.N. Barnwal, CIT-DR

Section 131Section 132(1)Section 143(2)Section 143(3)Section 153ASection 250(4)Section 68

Assistant Commissioner of Income-Tax, Central Circle-3, Surat vs. Antique Exim Pvt. Ltd., Surat

In the result, appeals filed by the Assessee in ITA Nos

ITA 525/SRT/2023[2018-19]Status: DisposedITAT Surat23 Nov 2023AY 2018-19

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble(Physical Hearing) Sl.

For Appellant: Shri Pawan Jagetia, CA

Section 139Section 142(1)Section 143(2)Section 143(3)Section 145(3)Section 153(1)

assessee was engaged in the business of trading and export & import of diamonds. The Assessing Officer was in the receipt of information from the Investigation Wing, Surat. As per the information Antique Exim Pvt. Ltd. & Ors available with Assessing Officer’s office, it was noticed by the Assessing Officer that ... further submitted that the addition of purchases and sales cannot be made solely relying on the information received from the DRI or Investigation Wing merely on the basis of general statements of 3rd parties. It was also argued that the appellant had received and made the entire payments through banking

Assistant Commissioner of Income-Tax, Central Circle-2, Surat vs. Tanman Jewels Pvt. Ltd., Surat

In the result, appeals filed by the Assessee in ITA Nos

ITA 521/SRT/2023[2018-19]Status: DisposedITAT Surat23 Nov 2023AY 2018-19

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble(Physical Hearing) Sl.

For Appellant: Shri Pawan Jagetia, CA

Section 139Section 142(1)Section 143(2)Section 143(3)Section 145(3)Section 153(1)

ACIT, Central Circle-3, Surat vs. Nobal Jewels Pvt. Ltd., Surat

In the result, appeals filed by the Assessee in ITA Nos

ITA 518/SRT/2023[2018-19]Status: DisposedITAT Surat23 Nov 2023AY 2018-19

Bench: Shri Pawan Singh, Hon'Ble & Dr. A. L. Saini, Hon'Ble(Physical Hearing) Sl.

For Appellant: Shri Pawan Jagetia, CA

Section 139Section 142(1)Section 143(2)Section 143(3)Section 145(3)Section 153(1)