“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

Mah Impex Pvt. Ltd., New Delhi vs. ITO, Ward- 16(1), New Delhi

ITA 279/DEL/2019[2009-10]Status: DisposedITAT Delhi31 Oct 2023AY 2009-10

Bench: Sh. M. Balaganesh & Sh.Anubhav Sharma

Section 143(1)Section 143(3)Section 147Section 148Section 153CSection 68

loss of Rs. 43,54,356/-. The case was processed u/s 143(1) of the Act. Subsequently, information was received by AO from the Investigation Wing of the Department that the assessee is beneficiary of taking accommodation entries of Rs. 66,00,000/- in the garb of share application money/share ... reopening the assessment u/s 148 is valid ignoring that the notice for reopening was issued merely on the basis of information supplied by the Investigation wing without fulfilling the conditions laid down under the Act for valid reopening of assessment. Therefore, the assessment so framed u/s 147 on borrowed satisfaction

Ratnashri Infrastructure Pvt. Ltd., Delhi vs. ACIT, Central Circle- 4, New Delhi

ITA 1607/DEL/2019[2010-11]Status: DisposedITAT Delhi31 Oct 2023AY 2010-11

Bench: Sh. M. Balaganesh & Sh.Anubhav Sharma

Section 131Section 133(6)Section 141(1)Section 142(1)Section 143(2)Section 148Section 68

assessee had filed return on 27.09.2010. It is engaged in the business of builder and developer. The Assessing officer received information from ADIT (Investigation Wing-2(1) Kolkata that a fund 1607/Del/2019 of Rs. 12.5 lakhs was received by the assessee in its bank account during the year under consideration ... suspect which can not satisfy test of reasons to believe u/s 147/148 of 1961 Act; sixthly they are merely based on some unconfronted investigation wing information , which has not been independently and adequately examined and analysed at end of Ld AO at stage of recording of reasons

M/S. Premji Valji & Sons (Jewellers) P. Ltd., Rajkot vs. The DCIT, Circle - 2 (1), Rajkot

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

ITA 257/RJT/2022[2010-11]Status: DisposedITAT Rajkot31 Oct 2023AY 2010-11

Bench: Ms Suchitra Kamble & Shri Waseem Ahmed, Accountant, Judic Member आयकरअपीलसं./Ita Nos.257 & 223/Rjt/2022 निर्धररवरध/Asstt. Years: 2010-11 & 2012-13 M/S Premji Valji & Sons D.C.I.T, (Jewellers) Pvt. Ltd. Vs. Circle-2(1), “Kuvarjibhai Tower” Rakot. Palace Road, Rajkot-360001. Pan: Aaccp2555N

For Appellant: Shri Ranjit Lalchandani, A.RFor Respondent: Shri Ashish Kumar Pandey, Sr. D.R

Section 132Section 143(3)Section 147Section 148

seen from the above that the AO has very systematically brought on record the information received by him from the Investigation Wing, Mumbai and also pointed out that the belief has been formed by him that the assessee has not fully and truly disclosed all material facts, as the information ... noted that the reopening and subsequent addition is based on specific information received by the AO from the Investigation Wing. No particular enquiries regarding the purchase from Nazar impex were made by the AO either in the regular scrutiny or the 1st reopening. It therefore cannot be said that

Abhishek Navnitkumar Doshi, Surat vs. Income Tax Officer, Ward 2(3)(7), Surat

In the result the ground No

ITA 530/SRT/2023[2011-12]Status: DisposedITAT Surat31 Oct 2023AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.530/Srt/2023 Assessment Year: (2011-12) (Physical Hearing) Abhishek Navnitkumar Doshi, Vs. The Ito, 204/205, 2Nd Floor, 6/1911-12, Ward-2(3)(7), Jin Shanti Building, Surat Surat – 395003, Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Afhpd0064M (Appellant) (Respondent) Appellant By Shri Sapnesh Sheth, Ca Respondent By Shri Vinod Kumar, Sr. Dr 12/10/2023 Date Of Hearing Date Of Pronouncement 31/10/2023

Section 132Section 144Section 147Section 148

after search and seizure action u/s 132 of the Act were carried out in the case of Shri Bhanwarlal Jain and others by the Investigations Wing, Mumbai on 03.10.2013. On the basis of this information, the Assessing Officer noted that income to the tune of Rs.1 ... various documentary evidences furnished by assessee. The ld. CIT-DR for the Revenue supported the order of AO. The ld. CIT-DR submits that Investigation Wing, Mumbai made a search on Bhanwarlal Jain Group. During the search and after search, the Investigation Wing made a thorough investigation and concluded that

Kanishk Gupta, Hyderabad vs. Assistant Commissioner of Income Tax, Central Circle-3(1), Hyderabad

In the result, the appeal of assessee is allowed

ITA 34/HYD/2022[2012-13]Status: DisposedITAT Hyderabad30 Oct 2023AY 2012-13

Bench: Shri R.K. Panda & Shri Laliet Kumarआ.अपी.सं / Ita No.34/Hyd/2022 (निर्धारण वर्ा / Assessment Year: 2012-13)

For Appellant: Shri Narahari BiswalFor Respondent: Ms. TH Vijaya Lakshmi

Section 10(38)Section 132Section 143(3)Section 148Section 153ASection 68

were not against the appellant. there is absolutely no reference to the appellant in their statement or in the report of the investigation wing. 12. That Ld. CIT(A) erred in upholding disallowance of the claim of the appellant on the basis of statement of some unconnected persons without allowing ... above contention, in the present case, there is incriminating material in the form of the various statements and documents gathered by the Investigation Wing along with the SEBI report and also the fact that during the course of Search the appellant, in the statement recorded could not even give basic

DCIT-19(3), Mumbai vs. Renu Prakash Bijlani, Mumbai

In the result, the appeal filed by the revenue for AY 2011-12 is dismissed and the appeal filed for AY 2014-15 is partly allowed

ITA 1645/MUM/2023[2014-15]Status: DisposedITAT Mumbai30 Oct 2023AY 2014-15

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

Section 10(38)Section 143(1)Section 68Section 69C

statement and bank statements to prove the purchase and sale of shares. However, the AO placed his reliance on the report given by the investigation wing and accordingly held that the assessee has declared bogus long term capital gains. Accordingly, the AO assessed the long term capital gains of Rs.55.53 ... find fault with any of the documents furnished by the assessee. He primarily placed reliance on the report of the investigation wing that the assessee has only availed accommodation entries for Long term capital gains. Accordingly, he assessed sale proceeds amounting to Rs.1.51 9 Renu Prakash Bijlani crores as unexplained

Income Tax Officer-1(1)(1), Mumbai vs. Sohni Depak Tanna, Mumbai

In the result appeal of the learned assessing officer and cross objections of the assessee are dismissed

ITA 2245/MUM/2022[2014-15]Status: DisposedITAT Mumbai30 Oct 2023AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm C.O.No. 135/Mum/2022 (Assessment Year 2014-15) Sohni Dipak Tanna Ito 1(1)(1), Mumbai 2Nd Floor, Tanna House, 11A, 534, 5Th Floor, Aaykar Bhavan, Nathlal Parekh Marg, M. K. Road, Vs. Mumbai-400020 Mumbai-400001 (Appellant) (Respondent) Pan No. Acept3611J Sohni Dipak Tanna Ito 1(1)(1), Mumbai 2Nd Floor, Tanna House, 11A, 534, 5Th Floor, Aaykar Bhavan, Nathlal Parekh Marg, M. K. Road, Vs. Mumbai-400020 Mumbai-400001 (Appellant) (Respondent) Pan No. Acept3611J Assessee By : Shri. Madhur Agrawal & Pankaj Jain Revenue By : Shri. Kishor Dhule Date Of Hearing: 03.10.2023 Date Of Pronouncement : 30.10.2023

For Appellant: Shri. Madhur Agrawal & PankajFor Respondent: Shri. Kishor Dhule

Section 10Section 143Section 147Section 148Section 68

analysed and it was seen that there are 116 beneficiaries, including one Mrs. Sohni Deepak Tanna (PAN :ACETT3611J). Further report from investigation Wing, Ahmedabad dated 13/12/2016 is received wherein the rigging in the price of script namely M/s looks health services Ltd was intimated. Further, BSE limited intimated that investigation ... rigging stating that though the learned AO has stated that the alleged price rigging has been recorded from the report dated 13/12/2016 of the investigation wing of the bath, however copy of the same has not been provided to the assessee and further assessee’s knowledge says that no action

Sambhav Buildwell (P) Ltd, New Delhi vs. ACIT, Central Circle-13, New Delhi

ITA 1938/DEL/2022[2014-15]Status: DisposedITAT Delhi30 Oct 2023AY 2014-15

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M.BALAGANESH (Accountant Member)

Section 132Section 132(4)Section 153ASection 68Section 69C

noticed that no interest was paid on the aforesaid loans by the assessee. Based on the pre and post search investigation conducted by the Investigation Wing of Income Tax Department, New Delhi, wherein it transpired that the aforesaid entities were merely shell companies involved in providing accommodation entries

C-Det Explosive Industries Pvt. Ltd, Nagpur vs. D.C.I.T, Circle-2, Nagpur

In the result, the appeal filed by the revenue (ITA/42/2020) is dismissed and the substantial question of law is answered against the revenue

ITA 312/NAG/2019[2014-15]Status: DisposedITAT Nagpur30 Oct 2023AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi

For Appellant: Shri Rajesh V. LoyaFor Respondent: Shri Vijay Kumar Subrahmanyan

Section 12ASection 143(3)Section 148Section 35Section 35(1)(ii)

paper book. The AO without any basis held the same as bogus taking into account, the investigation report of Kolkata Income Tax Investigation Wing claiming the said Herbicure Healthcare Bio- Herbal Research Foundation, is one of the bogus trust. The ld. AR argued that there was no evidence showing ... said organization as bogus institution and no report of Investigation Wing in this regard brought on record. The ld. AR vehemently argued that the AO failed to bring on record any report showing the said organization is bogus and payment of assessee is bogus. The CIT(A) without considering

C-Det Explosive Industries Pvt. Ltd, Nagpur vs. D.C.I.T, Circle-2, Nagpur

In the result, the appeal filed by the revenue (ITA/42/2020) is dismissed and the substantial question of law is answered against the revenue

ITA 311/NAG/2019[2013-14]Status: DisposedITAT Nagpur30 Oct 2023AY 2013-14

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi

For Appellant: Shri Rajesh V. LoyaFor Respondent: Shri Vijay Kumar Subrahmanyan

Section 12ASection 143(3)Section 148Section 35Section 35(1)(ii)

C-Det Explosive Industries Pvt.Ltd., Nagpur vs. Dy. Commissioner of Income Tax, Circle-2, Nagpur

In the result, the appeal filed by the revenue (ITA/42/2020) is dismissed and the substantial question of law is answered against the revenue

ITA 310/NAG/2019[2012-13]Status: DisposedITAT Nagpur30 Oct 2023AY 2012-13

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi

For Appellant: Shri Rajesh V. LoyaFor Respondent: Shri Vijay Kumar Subrahmanyan

Section 12ASection 143(3)Section 148Section 35Section 35(1)(ii)

M/S Gupta Corporation Pvt Ltd, Nagpur vs. Assistant Commissioner of Income Tax Central Circle2(1), Nagpur

In the result, the appeal of assessee is dismissed

ITA 49/NAG/2018[2011-2012]Status: DisposedITAT Nagpur30 Oct 2023AY 2011-2012

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Ravi

For Appellant: N O N EFor Respondent: Shri Kailash G. Kanojiya

Section 131Section 133(6)Section 147Section 148Section 68

three investor companies and the AO recorded his statement u/s. 131 of the Act. The AO discussed the issue taking into account report of Investigation Wing of Kolkata held the investor companies as paper companies and investments made as share capital is not reliable. Accordingly, the AO added an amount ... suspicion of the AO got further credence in light of statement of Shri Anand Sharma which was given before the Investigation Wing, Kolkata and a copy of which was given to the appellant on 05/12/2016. 4.2.6 Thus, from the facts of the case, it is apparent that the AO tried

Shri Khandelwal Diamonds Private Limited, Jaipur vs. ACIT, Circle 1, Jaipur

In the result, appeal of the assessee is partly allowed

ITA 375/JPR/2023[2012-13]Status: DisposedITAT Jaipur30 Oct 2023AY 2012-13

Bench: Him On The Reason Of Issuing Notice U/S 148 On Borrowed Satisfaction Of Another Wing Of The Department.

For Appellant: Sh. Mukesh Khandelwal (CA)For Respondent: Sh. Anup Singh (Addl. CIT) a

Section 143(3)Section 148

facts: (i) A search and seizure action under section 132 of the Act was carried out in case of Sh. Bhanwarlal Jain Group by Investigation Wing, Mumbai wherein it was found that this group was an entry provider indulging in providing accommodation entries pertaining to bogus purchases to various parties ... cheque does not tantamount to discharge of the onus cast on the appellant especially when the department had received specific material/information from the Investigation wing, wherein Sh. Bhanwarlal Jain/ the suppliers operating the benami concerns, on oath had admitted the fact that they have merely provided entry / issued bills without

Dam Capital Advisors Limited, Mumbai vs. DCIT-4(1)(1), Mumbai

In the result, appeal is allowed

ITA 1991/MUM/2022[2012-2013]Status: DisposedITAT Mumbai27 Oct 2023AY 2012-2013

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 14ASection 234BSection 36(1)(iii)Section 43BSection 92E

findings regarding transfer pricing issues in respect of international transactions or specified domestic transactions or both have been recorded by the Investigation Wing or the AO. 3.4. For cases to be referred by the AO to the TPO in accordance with paragraphs 3.2 and 3.3 above, in respect of transactions

Income Tax Officer, Surat vs. Magnifique Gems Private Limited, Surat

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

ITA 458/SRT/2023[2011-12]Status: DisposedITAT Surat27 Oct 2023AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.389 & 458/Srt/2023 "नधा"रण वष"/Assessment Year: (2011-12) (Physical Court Hearing) Magnifique Gems Pvt. Ltd. Income Tax Officer, Ward- 105, Rajshree Building, Maniyara 1(1)(4), Surat, Aayakar Bhawan, Sheri Na Naka,Mahidharpura, Near Majura Gate, Opp. New Surat-395003. Civil Hospital, Surat-395001

Section 132(4)Section 143(3)Section 147Section 250

available information received in the office from DIT(Investigation),Mumbai through proper channel, a search and seizure action was carried out by the Investigation Wing, Mumbai in the case of Shri Bhanwarlal Jain and his group based in Mumbai on 03.10.2013. The search faction resulted into collection of evidences ... various documentary evidences furnished by assessee. The ld. CIT-DR for the Revenue supported the order of AO. The ld. CIT-DR submits that Investigation Wing, Mumbai made a search on Bhanwarlal Jain Group. During the search and after search, the Investigation Wing made a thorough investigation and concluded that

Magnifique Gems Private Limited, Surat vs. Income Tax Officer, Ward -1(1)(4), Surat

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

ITA 389/SRT/2023[2011-12]Status: DisposedITAT Surat27 Oct 2023AY 2011-12

Section 132(4)Section 143(3)Section 147Section 250

Pankaj Bhanwarlal Dhaddha, Mumbai vs. I.T.O. Ward 19(2)(5) Mumbai, Mumbai

ITA 2458/MUM/2023[2011-12]Status: DisposedITAT Mumbai26 Oct 2023AY 2011-12

Bench: Shri Kuldip Singh & Shri Amarjit Singhassessment Year: 2011-12 Shri Pankaj Bhanwarlal Income Tax Officer Ward Dhaddha, 19(2)(5). 171, 2Nd Floor, Baj Bldg, Vs. Dr. Ss Rao Marg, Back Road Khetwadi, Parel, Mumbai- 400 004 Mumbai – 400 012 Pan: Agppd5773L (Appellant) (Respondent)

For Appellant: Shri Bharat Kumar, A.RFor Respondent: Shri Ajay Singh, Sr.AR

Section 143(3)Section 147Section 69C

Dhaddha 2. Briefly stated facts necessary for consideration and adjudication of the issues at hand are : on the basis of investigation conducted by the investigating wing, wherein it was found that the assessee has entered into transaction with proprietary firm M/s. Shree Nakhodaji Impex for purchase to the tune ... purchasing the goods relied upon by the assessee are bogus but simply made the addition on the basis of information received from the investigation wing. It is also not in dispute that even at the first appellate stage books of accounts have not been examined nor rejected rather addition

Sumit Goel, Jaipur vs. Income Tax Officer, Jaipur

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

ITA 8/JPR/2023[2012-13]Status: DisposedITAT Jaipur26 Oct 2023AY 2012-13

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

For Appellant: Shri S.L. Poddar(Adv.)&For Respondent: Smt. Monisha Choudhary(Addl.CIT)

Section 10(38)Section 147Section 148Section 56Section 68Section 69C

entered into by the assessee. Therefore, this addition deserves to be deleted. The learned AO has made the basis of addition, the report of investigation wing as well as statement recorded in search and survey proceedings of various persons who were entry providers. The learned AO also did not bring ... Authority in the present case. The Tribunal by impugned order has categorically held that the material information received by the Assessing Officer from the investigation wing alongwith certain statements recorded by DBIT Investigation, Calcutta could not be taken into consideration as that material was not disclosed nor an opportunity

Grishma Hemanshu Mody, Mumbai vs. CIT(Appeals), Delhi

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

ITA 895/MUM/2023[2011-12]Status: DisposedITAT Mumbai25 Oct 2023AY 2011-12

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

Section 131Section 133(6)Section 68

have initiated reassessment proceedings on the basis of a retracted statement. 6. We notice that the AO has mainly relied upon the report of investigation wing to come to the conclusion that the assessee has availed only accommodation entries. He has also referred to the non-reply of the notices

M/S. Trustar Diamond, Mumbai vs. ACIT, Circle-19(3), Mumbai

ITA 748/MUM/2023[2012-13]Status: DisposedITAT Mumbai23 Oct 2023AY 2012-13

Bench: Shri Kuldip Singh & Shri Gagan Goyalm/S Trustar Diamond Ec-3070, G-Block, Bharat Diamond Bourse, Bandra East, Mumbai-400 051 Pan: Aafft7349N ..... Appellant Vs. Acit Circle 19(3) R. No. 206, 2Nd Floor Matru Mandir, Tardeo Road, Mumbai-400007 Mumbai ..... Respondent

For Appellant: Shri Devang Divecha /Ms. Varsha GuptaFor Respondent: Shri P. D. Chogule

Section 250

correct in restricting the addition made on account of bogus purchases to 12.5% of total bogus purchases ignoring the fact that the Investigation wing Mumbai has unearthed the modus operandi of the Diamond Industry. 2. Whether on the facts and circumstances of the case the Ld. CIT(A) has failed ... exporter of diamonds. A search and survey action was conducted in the case of Bhanwarlal Jain on 03.10.2013 by DGIT (Inv.) Mumbai. The Investigation Wing, Mumbai, covered certain name sake/ dummy directors/partners/proprietors of various concerns that were being actually managed, controlled and operated by Bhanwarlal Jain & Family, under section