“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

Ruby Singh, New Delhi vs. DCIT, Central Circle-8, New Delhi

In the result, all the seven captioned appeals filed by the assessee stand dismissed in the aforesaid manner

ITA 2876/DEL/2022[2014-15]Status: DisposedITAT Delhi29 Sept 2023AY 2014-15

Bench: Shri Chandra Mohan Garg & Shri M. Balaganesh, Accoutant Member

For Appellant: Shri Gautam Jain, Adv. &For Respondent: Shri Vivek Vardhan, Sr. DR

Section 147Section 148Section 151

pertaining to assessment year 2018-19 and 2019-20. The Ld. Counsel for the assessee also submitted that in the statements recorded by Investigation Wing, Shri Chetan Shukla partner of M/s Arihant Associates clearly stated that employee-employer relationship was existing between the assessee and M/s Arihant Associates

Ruby Singh, Delhi vs. DCIT, Central Circle-8, New Delhi

In the result, all the seven captioned appeals filed by the assessee stand dismissed in the aforesaid manner

ITA 2875/DEL/2022[2013-14]Status: DisposedITAT Delhi29 Sept 2023AY 2013-14

Bench: Shri Chandra Mohan Garg & Shri M. Balaganesh, Accoutant Member

For Appellant: Shri Gautam Jain, Adv. &For Respondent: Shri Vivek Vardhan, Sr. DR

Section 147Section 148Section 151

Namah Shivaya Trading Pvt Ltd, New Delhi vs. ITO Ward Ward - 17(3), New Delhi

In the result, appeal of the assessee is allowed in the manner

ITA 4739/DEL/2019[2008-09]Status: DisposedITAT Delhi29 Sept 2023AY 2008-09

Bench: supply of reasons thereby debarring appellant to file objection to the assumption of jurisdiction for initiation of reassessment proceedings. 4. The Ld. AR raising above legal contentions submitted that since the AO did not assume valid jurisdiction to initiate the reassessment proceedings and to issue notice u/s 148 of the Act, therefore, initiation of reassessment proceedings and all constant

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

name of this company/ entity/ person are reproduced below in a tabular: I.T.A.No.4739/Del/2019 I have perused the information received from the Investigation Wing, New Delhi. The Investigation Wing of the Department has sent comprehensive details comprising inter alia the Beneficiary's Name, Value of entity Taken, Date on which ... conclusion clearly show that the initiation of I.T.A.No.4739/Del/2019 reassessment proceedings are based on incorrect facts taken from the information supplied by the Investigation Wing without the same being verified either from the bank or from the assessee prior to initiation of reassessment proceedings

Income Tax Office, Ward-1, Ichalkaranjikaranji, Kolhapur vs. Splice Biotech Pvt Ltd, Kolhapur

In the result, the appeal filed by the Revenue stands allowed

ITA 775/PUN/2023[2013-14]Status: DisposedITAT Pune27 Sept 2023AY 2013-14

For Appellant: Shri Hari Krishan

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

scrip S. K. Stock Dealers Pvt. Ltd. and subsequent sale is nothing, but a bogus transaction by relying upon the investigation report by the Investigation Wing of the Department and the Securities & Exchange Board of India (SEBI). The Assessing Officer also made addition on account of unsecured loans received from ... sake of brevity, the modus operandi is not discussed herein. The appellant was also provided the copy of statements recorded by the Investigation Wing of the Department, Calcutta from Shri Navneet Kumar Singhania and Shri Beni Prasad Lahoti, who are alleged to be involved in providing accommodation entries as bogus

DCIT, C.C-3(3), Kol, Kolkata vs. M/S. Surya Alloy Industries Ltd., Kolkata

In the result, the appeal of the revenue stands dismissed

ITA 607/KOL/2023[2011-12]Status: DisposedITAT Kolkata27 Sept 2023AY 2011-12

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.607/Kol/2023 Assessment Year: 2011-12 Dcit, C.C-3(3), Kolkata………………….……...........................……Appellant Vs. M/S Surya Alloy Industries Ltd. …………………........……...…..…..Respondent 1/1 Camac Street, 3Rd Floor, P.O. Park Street, Kolkata- 700016. [Pan: Aadcs5890E] Appearances By: Shri Sudip Kr. Bandyopadhyay, Addl. Cit-Dr, Appeared On Behalf Of The Appellant. Shri N. S. Saini, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : July 27, 2023 Date Of Pronouncing The Order : September 27, 2023 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Revenue Against The Order Dated 03.02.2023 Of The Commissioner Of Income Tax (Appeals)-21, Kolkata (Hereinafter Referred To As The ‘Cit(A)’) Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Revenue In This Appeal Has Taken The Following Grounds Of Appeal: “(I) That, On The Facts & In The Circumstances Of The Case & In Law, The Ld.Cit(A) Has Erred In Appreciating The Facts That The Assessee Failed To Establish The Identity, Genuineness Of The Transaction & Creditworthiness

Section 132(4)Section 147Section 250

time of hearing of the case.” 3. The brief facts of the case are that the Assessing Officer received information from the investigation wing that the assessee during the year had received an amount of Rs.2.53 crores from M/s Unisys Software & Holding Industries Ltd. The Assessing Officer further took note ... report of the investigation wing, wherein, it has been stated that the said company was operated by one Jagadish Purohit and his other family members. That the said Jagadish Purohit had made high value fund transfers through banking channels in the case of various inter- connected private limited companies, which

Tirupati Developers, Mumbai vs. ITO Ward-17(3)(4), Mumbai

In the result the appeal of the assessee is partly allowed

ITA 1851/MUM/2023[2010-11]Status: DisposedITAT Mumbai27 Sept 2023AY 2010-11

Bench: Shri Amarjit Singh

For Appellant: Shri. Prateek JainFor Respondent: Shri. Prakash Kishinchandani

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

unsecured loan from the concern managed and controlled by Shri. Bhawarlal Jain in whose case a search action was conducted on 30.10.2013 by the investigation wing of the department. During the course of assessment the AO has rejected the claim of the assessee that they have established the identity

Tirupati Developers, Mumbai vs. ITO Ward-17(3)(4), Mumbai

In the result the appeal of the assessee is partly allowed

ITA 1850/MUM/2023[2012-2013]Status: DisposedITAT Mumbai27 Sept 2023AY 2012-2013

Bench: Shri Amarjit Singh

For Appellant: Shri. Prateek JainFor Respondent: Shri. Prakash Kishinchandani

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

D.C.I.T. - 15(3)(2), Mumbai vs. Sadguru Management Consultancy P. Ltd., Mumbai

In the result ground of appeal filed by the assessee under rule 27 of ITAT Rule is allowed and appeal of the revenue is dismissed

ITA 6323/MUM/2017[2009-10]Status: DisposedITAT Mumbai27 Sept 2023AY 2009-10

Bench: Aby T Vakery & Shri Amarjit Singhdy. Commissioner Of Vs. Sadguru Management Income Tax- 15(3)(2) Consultancy Pvt. Ltd Room No. 451, 4 Th Floor, 7, Gagangiri, Plot No. 47, Aayakar Bhavan, Sector 17, Vashi, Navi Maharshi Karve Road, Mumbai- 400703 Mumbai- 400020 स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Aamcs1626F Appellant .. Respondent

For Appellant: Shri Dharan Gandhi, ARFor Respondent: Shri Suresh D. Gaikwad, DR

Section 132Section 143(1)Section 148Section 250Section 68

assessee was re-opened by the issuing of notice u/s 148 of the Act on 27.07.2015 on the basis of information received from the investigation wing of the Income Tax department on the search action u/s 132 of the Act conducted in the case of Mr. Pravin Kumar Jain

Ron Creations Private Limited, Mumbai vs. Income Tax Officer 16(1)(5), Mumbai

In the result, appeal filed by the Assessee stands allowed

ITA 1551/MUM/2023[2010-2011]Status: DisposedITAT Mumbai26 Sept 2023AY 2010-2011

Bench: Shri N. K. Choudhry, Jm

For Appellant: Sh. Atul Mehta & Uday Shah, CAFor Respondent: Sh. Anurag Tripathi, DR

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

processed under section 143(1) of the Act on dated 31.05.2011. Subsequently, on the information received from the 2 Ron Creations Pvt. Ltd. Investigation Wing, Mumbai qua hawala transactions entered into for goods or materials, it was found that the Assessee is also the beneficiary of hawala transaction. The following

E-Ally Consulting (India) Pvt Ltd., Mumbai vs. DCIT, CC-1(1), Mumbai

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 1230/MUM/2023[2013-14]Status: DisposedITAT Mumbai25 Sept 2023AY 2013-14

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Shri Jayant R. Bhatt, Ld. ARFor Respondent: Shri Biswanath Das, CIT-DR

Section 132Section 153CSection 250Section 68

search, without furnishing any documentary evidence to explain or prove the reasons for such a gap in retraction of statement given before the investigation wing. In department’s record Shri Praveen Kumar Jain is a well known established entry provider and he himself accepted before various forums that

Income Tax Officer, Ward-2(3)(8), Surat vs. Mahaveer Shantilal Jain, Surat

ITA 453/SRT/2019[2013-14]Status: DisposedITAT Surat25 Sept 2023AY 2013-14

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.453/Srt/2019 "नधा"रण वष"/Assessment Year: (2013-14) (Physical Hearing) The Ito, Vs. Mahaveer Shantilal Jain, Ward-2(3)(8), Prop. M/S Mukesh Diamonds, 1St Surat. Office No.401, Floor, H.No.5/1171/72/73/1090, New Dtc, Hath Falia, Haripura, Surat – 395009. (Appellant) (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aqupj6439L Appellant By Shri Ritesh Mishra, Cit(Dr) Respondent By Shri P. M. Jagasheth, Ca Date Of Hearing 08/09/2023 Date Of Pronouncement 25/09/2023

Section 142(1)Section 143(2)Section 143(3)

Bhanwarlal Jain Group. The assessing officer was in possession of information that a search and seizure action has been carried out by the Investigation Wing, Mumbai on the Rajendra Jain and Bhanwarlal Jain Group, who were indulged in providing of accommodation entries in the form of unsecured loans, bogus purchases

Kirit Ramanlal Shah, Pune vs. The Assistant Commissioner of Income Tax, Circle-3, Pune

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

ITA 965/PUN/2023[2011-12]Status: HeardITAT Pune22 Sept 2023AY 2011-12

Bench: Shri R.S. Syal, Hon. & Shri Partha Sarathi Chaudhury, Hon.Kirit Ramanlal Shah, Vs Acit, Circle-3, C/O Acropolis, 3Rd Floor, Pune. 1076/20, Gokhale Road, Shivajinagar, Model Colony, Pune, Maharashtra. Pan: Adwps 9391 P Appellant Respondent Assessee By : Shri Suhas P Bora, Ca Revenue By : Shri Ramnath P. Murkunde, Dr Date Of Hearing : 21/09/2023 Date Of Pronouncement : 22/09/2023 O R D E R Per Partha Sarathi Chaudhury, Jm: This Appeal Preferred By The Assessee Emanates From The Order Of National Faceless Appeal Centre [Nfac], Delhi, Dated 31.07.2023 For A.Y.2011-12 As Per The Grounds Of Appeal On Record.

For Appellant: Shri Suhas P Bora, CAFor Respondent: Shri Ramnath P. Murkunde, DR

Section 143(3)

reopening of assessment proceedings 3. The learned AO has erred in law on reopening the assessment based on information received from Investigation Wing of Department which constitutes an opinion and not tangible material which is necessary for reopening. The learned AO on the facts and the circumstances of the case ... just the basis of applying the modus operandi of NMCE Scam, FMC Order dated 23.07.2011 on financial irregularities in NMCE, Information from the Investigation wing of the Department, Ahmedabad and theory of preponderance of human probabilities/ tax planning by eneralizinq it to the case of assesse without bringing on record

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

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

ITA 626/KOL/2023[2013-14]Status: DisposedITAT Kolkata22 Sept 2023AY 2013-14

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 131Section 142(1)Section 143(2)Section 143(3)Section 144Section 68

said evidences the authorities below have straight away relied on the theory of shell companies and their mode of operation and finding of the Investigation Wing and thus, the addition was made and confirmed sans any substantive basis. The Ld. AR, therefore, prayed that the addition as confirmed

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

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

ITA 625/KOL/2023[2012-13]Status: DisposedITAT Kolkata22 Sept 2023AY 2012-13

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Section 131Section 142(1)Section 143(2)Section 143(3)Section 144Section 68

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1670/MUM/2023[2017-18]Status: DisposedITAT Mumbai22 Sept 2023AY 2017-18

Section 132Section 143(3)Section 153A

ration which too he has rejected. 20. Before us, ld. Counsel for the assessee submitted that there is no allegation by either by the Investigation Wing, the Assessing Officer or by the CIT(A) that the assessee have not carried out the work as per contracts awarded to it. Further

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1669/MUM/2023[2016-17]Status: DisposedITAT Mumbai22 Sept 2023AY 2016-17

Section 132Section 143(3)Section 153A

J M Mhatre Infra Pvt Ltd., Panvel vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1667/MUM/2023[2014-15]Status: DisposedITAT Mumbai22 Sept 2023AY 2014-15

Section 132Section 143(3)Section 153A

J M Mhatre Infra Pvt Ltd., Mumbai vs. ACIT, CC-1, Thane

In the result, appeal of the assessee is partly allowed

ITA 1664/MUM/2023[2013-14]Status: DisposedITAT Mumbai22 Sept 2023AY 2013-14

Section 132Section 143(3)Section 153A

M/S. Minestone, Mumbai vs. ACIT 18(2), Mumbai

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

ITA 2546/MUM/2022[2010-11]Status: DisposedITAT Mumbai22 Sept 2023AY 2010-11

Bench: Shri B R Baskaran, Am & Ms. Kavitha Rajagopal, Jm M/S. Minestone Acit-18(2) Room No. 32, 4Th Floor, Plot No. 98, Mumbai -400 020 Sagar Bhavan, Building No.2, Vs. Kantilal M Sharma Marg, Lohar Chawl, Kalbadevi, Mumbai-400 002

For Appellant: Shri K. GopalFor Respondent: Shri Soumendu Kumar Dash

Section 143(1)Section 143(3)Section 144Section 147Section 148(1)Section 250

said fact and stated that the reopening of the assessment in the assessee’s case was based on the information received from the Investigation Wing that the assessee has ceased off all the liabilities which it was due to ADB and other sundry creditors. The ld. DR further stated that ... reason cross 6 M/s. Minestone vs. ACIT examination to the assessee could not be availed. The ld. A.O. relied on the report of the Investigation Wing that the assessee has not repaid the said loan and had also not initiated any legal proceeding to recover its dues from the defaulting

JCIT Circle-28(1), Delhi vs. Ajay Sharma, Delhi

In the result, appeal of the revenue is dismissed

ITA 1257/DEL/2022[2009-10]Status: DisposedITAT Delhi22 Sept 2023AY 2009-10

Bench: SHRI CHANDRA MOHAN GARG (Judicial Member), DR. B.R.R. KUMAR (Accountant Member)

For Appellant: Ms. Sonal Wadhera, AdvFor Respondent: Shri Amit Katoch, CIT(DR)

Section 69

seen that the information received by the Assessing Officer from ACIT, Central Circle, who in turn had received the said information from the Investigation Wing pertained to receipt of Rs. 1.95 crore in cash ( and Rs.5 lakhs by cheque) from Yamuna Builders Pvt. Ltd. (Yamuna Builders, in short). The reason