“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

Natwar Lal Daga, Mumbai vs. CIT (A)-52, Mumbai

ITA 396/MUM/2021[2012-13]Status: DisposedITAT Mumbai31 Jul 2023AY 2012-13

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon’Ble

Section 68

admit the said additional grounds of assessee. 3. Brief facts of the case are, search and seizure operations carried out by the Investigation Wing of the Income-tax Department, Delhi on Mr R.K. Kedia between 13.06.2014 to 17.06.2014. Simultaneously, Page No. | 2 ITA NOs. 396, 397, 398 & 399/MUM/2021 ... 573/MUM/2021 M/s. Natwarlal Daga Search and seizure operations were also carried out by the Investigation Wing of the Income-tax Department, Mumbai on the assessee between 13.06.2014 to 15.06.2014. During search, three ledger accounts, main being R.K. Mall, found at the premises of Mr R.K.Kedia during the search proceedings carried

Raju Mohan Gurnani, Navi Mumbai vs. DCIT Central Cirle - 5(2), Mumbai

In the result, all the appeals of the assessee are partly allowed

ITA 2092/MUM/2021[2016-17]Status: DisposedITAT Mumbai31 Jul 2023AY 2016-17

Section 131Section 132Section 143(3)Section 153CSection 23(4)(b)

search seeking explanation, if any, for the loose papers in question. In fact, explanation, if any, for the loose papers was sought by the Investigation Wing in the post search inquiry from Ms. Priyaa Mohan Gurnani and not from appellant (Page No. 47 to 57 of the Paper Book). • Without ... evidence or inquiry that the said papers were found in my possession and were in my handwriting. o The explanation was furnished to Investigation Wing vide letter dt. 25.04.2016 by Priyaa Mohan Gurnani and not by me in whose search and in whose hands the papers were found and seized

Raju Mohan Gurnani, Navi Mumbai vs. DCIT Central Cirle - 5(2), Mumbai

In the result, all the appeals of the assessee are partly allowed

ITA 2091/MUM/2021[2015-16]Status: DisposedITAT Mumbai31 Jul 2023AY 2015-16

Section 131Section 132Section 143(3)Section 153CSection 23(4)(b)

Raju Mohan Gurnani, Navi Mumbai vs. DCIT Central Cirle - 5(2), Mumbai

In the result, all the appeals of the assessee are partly allowed

ITA 2090/MUM/2021[2014-15]Status: DisposedITAT Mumbai31 Jul 2023AY 2014-15

Section 131Section 132Section 143(3)Section 153CSection 23(4)(b)

Forever Flourishing Fin. & Inv. Pvt. Ltd., Mumbai vs. DCIT (CC)-3(4), Mumbai

In the result, appeal for the assessment year 2012

ITA 6120/MUM/2019[2013-14]Status: DisposedITAT Mumbai31 Jul 2023AY 2013-14

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Mr. Ashok Bansal/Ajay DagaFor Respondent: Mr. Ankush Kapoor, CIT-DR

Section 143(2)Section 147

Income-tax Act, 1961 (in short ‘the Act’) was carried tax Act, 1961 (in short ‘the Act’) was carried out by the Investigation Wing of the Income out by the Investigation Wing of the Income-tax Department, in tax Department, in “Mahavir Group” of cases including M/s Mahavir Road ... shares at huge premium to various issued shares at huge premium to various share applicant issued shares at huge premium to various companies. The Investigation Wing was of the opinion that share companies. The Investigation Wing was of the opinion that share companies. The Investigation Wing was of the opinion

Forever Flourishing Fin & Inv. Pvt Ltd, Mumbai vs. DCIT-CC-3(4), Mumbai

In the result, appeal for the assessment year 2012

ITA 6040/MUM/2019[2012-13]Status: DisposedITAT Mumbai31 Jul 2023AY 2012-13

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal ()

For Appellant: Mr. Ashok Bansal/Ajay DagaFor Respondent: Mr. Ankush Kapoor, CIT-DR

Section 143(2)Section 147

Major Suresh Yadav(Retd.), New Delhi vs. ITO Ward-24(3), New Delhi

In the result, the appeal of the assessee is allowed

ITA 9432/DEL/2019[2003-04]Status: DisposedITAT Delhi31 Jul 2023AY 2003-04

Bench: Shri Kul Bharat[Assessment Year : 2003-04] Major Suresh Yadav (Retd.), Vs Ito, Farm No.36, Dera Mandi Road, Ward-24(3), Mandi Gaon, Near Chattarpur, New Delhi. New Delhi-110030. Pan-Aaupy5153C Appellant Respondent Appellant By Shri Mukesh Kohli, Ca Respondent By Shri Om Parkash, Sr. Dr Date Of Hearing 28.06.2023 Date Of Pronouncement 31.07.2023

Section 143(2)Section 147Section 148Section 234A

were also conducted by inspector that average monthly Rs.200/- were charged per month for each connection. On the basis of information received from the Investigation wing and enquiries made in the case, the matter was examined along with the return of Income, it revealed that the assessee had reported only ... order at page no 14 and 15 of the paper book. "In the case of the appellant AO has received the information from the investigation wing that during the year under consideration appellant had 28000 cable connections subscribers, whereas the appellant had paid entertainment tax only to the extent

Lokenath Investment Consultants P.Ltd, New Delhi vs. ACIT, Central Circle-8, New Delhi

In the result, the appeal of the assessee is dismissed

ITA 1097/DEL/2019[2009-10]Status: DisposedITAT Delhi31 Jul 2023AY 2009-10

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

For Appellant: NoneFor Respondent: Ms. Sarita Kumari, CIT DR

Section 139Section 148Section 153ASection 153C

same purpose. 7 Lokenath Investment Consultants Pvt. Ltd. 3.9 It is observed from the assessment order that commission was issued to the Investigation Wing, Kolkata to examine Shri Sudhir Satnaliwala who was the contact person for arranging entries for the Priya Gold Group in Kolkata. However, Shri Sudhir Satnaliwala never ... complied with any summon and evaded the post search proceedings. Another commission was issued by Investigation Wing, Kolkata for conducting enquiries about the dummy directors in first and second layer companies through which accommodation entries had been given to Priya Gold Group Companies and also the entry operators of these

Shri Darshan K Vakharia, Mumbai vs. Income Tax Officer, Ward 2(1), Mumbai

Appeal is allowed

ITA 1540/MUM/2023[2012-2013]Status: DisposedITAT Mumbai28 Jul 2023AY 2012-2013

Bench: Shri Br Baskaran, Am & Shri N. K. Choudhry, Jm आयकरअपीलसं./ I.T.A. No. 1540/Mum/2023 (निर्धारणवर्ा / Assessment Year: 2012-13) & आयकरअपीलसं./I.T.A. No. 1539/Mum/2023 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Shri. Vimal PunmiyaFor Respondent: Shri. Nagnath B. Pasale

Section 132Section 132(4)Section 147Section 250

also held by the Hon'ble Courts in the judgments cited hereinabove it is abundantly clear that the information received from the Investigation Wing is tangible material for assuming jurisdiction under the provisions of section 147 of the Act. It is not in dispute that the appellant has received money

Shri Darshan K Vakharia, Mumbai vs. Income Tax Officer, Ward 2(1), Mumbai

Appeal is allowed

ITA 1539/MUM/2023[2013-2014]Status: DisposedITAT Mumbai28 Jul 2023AY 2013-2014

For Appellant: Shri. Vimal PunmiyaFor Respondent: Shri. Nagnath B. Pasale

Section 132Section 132(4)Section 147Section 250

Manoj Kumar Agrawal, Mumbai vs. Income Tax Officer, 18(2)(3), Mumbai

In the result, appeal filed by the Assessee stands allowed

ITA 1534/MUM/2023[2014-2015]Status: DisposedITAT Mumbai28 Jul 2023AY 2014-2015

Bench: Shri B R Baskaran, Am & Shri N. K. Choudhry, Jm

For Appellant: Shri. Ashok Bansal, Ld. CAFor Respondent: Shri. Naganath B. Pasale, Ld. DR

Section 10Section 10(38)Section 131Section 143(1)Section 250Section 69C

capital gain on above 1,60,379 3 I.T.A. No. 1534/Mum/2023 Manoj Kumar Agrawal 3. The Assessee on the basis of report of the Investigation Wing of Kolkata, wherein it was stated “that Shri. Deepak Patwari director of one of the above three companies, has recorded his statement ... However, the AO has refused to accept those details, only for the reason that the above said company has been categorized by the investigation wing as accommodation entry provider. 9. We noticed from the record that the assessee has filed following documents in order to discharge the burden placed upon

Krutika Rajendra Jain, Mumbai vs. Income Tax Officer, Ward-19(2)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 139/MUM/2023[2011-12]Status: DisposedITAT Mumbai28 Jul 2023AY 2011-12

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

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

Assessing Officer reopened the assessment under section 147 of the Act on the basis of 2 Krutika Rajendra Jain information received from the investigation wing that a person named Vipul Vidur Bhatt and his group of companies are engaged in the business of providing accommodation entries, inter alia ... connection of the assessee with Vipul Vidur Bhatt. He submitted that the Assessing Officer has simply placed reliance on the report given by the investigation wing. He submitted that the Assessing Officer did not conduct any independent inquiry on the transactions entered by the assessee nor did he find

Garv Associates, Faridabad vs. ITO Ward-1(3), Faridabad

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

ITA 1267/DEL/2023[2012-13]Status: DisposedITAT Delhi28 Jul 2023AY 2012-13

Bench: Shri Chandra Mohan Garg & Shri Pradip Kumar Kediaassessment Year: 2012-13 M/S. Garv Associates, Ito Ward -1(3), Faridabad B/105, Green Field Colony, Sarai Khawaja, Faridabad, Haryana 121010 Vs. Pan Aajfg 5926 E (Appellant) (Respondent) For Assessee : Shri Dinesh Kumar Aggarwal, Ca Revenue For : Shri Om Prakash, Sr. Dr Date Of Hearing : 08.06.2023 Date Of Pronouncement : 28.07.2023 Order Per Chandra Mohan Garg, J.M. This Appeal Has Been Filed Against The Order Of Ld. Nfac, New Delhi Dated 08.03.2023 For Ay 2012-13. 2. The Ld. Assessee’S Representative Submitted That The Assessee, Except Ground No. 10, Does Not Want To Press Other Grounds Of Appeal Hence, Other Grounds Of Appeal Are Dismissed. Remaining Sole Effective Ground No. 10 Reads As Follows:- 10) The Ld. Cit (A) Has Erred In Interpreting Provision Of Section 68 After Considering Facts & Circumstances Of The Matter In Respect Of Unsecured Loans Of Rs. 40,00,000/-, Raising The Following Questions:- I. Whether, 'First Proviso' Of 'Section 68' Of The Income Tax Act, 1961 Is Squarely Covered Transaction In The Nature Of Unsecured Loans' Or Shall Restricted To Credits On Account Of 'Share Application Money', 'Share Capital', Share Premium Etc.? Ii. Whether, As Per Provisions Of Section 68 Of The Income Tax Act, 1961, The Assessee Has Not Discharged Its Initial Onus To Prove: (1) Identity Of The Creditor Lenders; (2) Credit-Worthiness Of The Creditor Lender; & (3) Genuineness Of The Transaction. By Submitting Following Set Of Documentation:

For Appellant: Shri Dinesh Kumar Aggarwal, CA

Section 68

claimed to have received amount from a company which was controlled by an establish entry provider Shri Anirudh Joshi, who himself admitted before the investigation wing that he has provided accommodation entries through his sister concerns. The ld. Senior DR also pointed out that since the assessee failed to establish

Kashyap K. Mehta, Mumbai vs. ACIT 21 (1), Mumbai

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

ITA 640/MUM/2023[2011-12]Status: DisposedITAT Mumbai27 Jul 2023AY 2011-12

Bench: Shri Prashant Maharishi, Am & Shri N. K. Choudhry, Jm

For Appellant: Shri. Vinod Kumar BindalFor Respondent: Ms. Shreekala Pardeshi, Ld

Section 10(38)Section 143(1)Section 143(3)Section 147Section 148Section 2Section 250Section 68Section 69C

LTCG on sale of listed equity shares of Shreenath Commercials and Finance Ltd relying on a report of the investigation wing of the department and some statements recorded u/s 132(4)/ 131 of the Act at the back of the appellant without giving copies of the material gathered and cross

Dy. Commissioner of Income Tax. Central Circle-1(2), Mumbai vs. Shri Milan Kavinchandra Parikh, Mumbai

In the result, the appeal by the Revenue is dismissed

ITA 1382/MUM/2023[1997-98]Status: DisposedITAT Mumbai27 Jul 2023AY 1997-98

Bench: Shri G.S. Pannu & Shri Sandeep Singh Karhail

For Appellant: Shri Anuj KisnadwalaFor Respondent: Smt. Mahita Nair

Section 132Section 139(1)Section 143(3)Section 147Section 148Section 250Section 271(1)(c)

statement of these four individuals, including the assessee, with HSBC Shri Milan Kavinchandra Parikh ITA no.1382/Mum./2023 Bank, Geneva, came into possession of the Investigation Wing, which showed that these four individuals are beneficiaries of the four bank accounts held by the four companies in HSBC Bank, Geneva

Sv Agri Trade LLP, Mumbai vs. Dy CIT-Central Circle 1(1), Mumbai

ITA 2959/MUM/2022[2016-2017]Status: DisposedITAT Mumbai27 Jul 2023AY 2016-2017

For Appellant: Shri Amar GahlotFor Respondent: Dr. Kishor Dhule

Section 133ASection 142Section 143(1)Section 143(3)Section 40

addition under consideration was excel file ‘TOOR 2015 SALES.xls’ impounded during the survey proceedings under Section 133A of the Act conducted by the Investigation Wing, New Delhi at business 18 premises of Glencore Grain India Pvt. Ltd. The aforesaid excel file contained transaction with the name ‘Agritrade’. The contention

Income Tax Officer-33(3)(3), Mumbai vs. Sanajy Mahabir Maheshka, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 6169/MUM/2019[2012-13]Status: DisposedITAT Mumbai27 Jul 2023AY 2012-13

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

Section 148Section 68

penny stocks. Since the assessee has sold shares of M/s. Global Capital Market Ltd., based on the above said information received from the Investigation Wing, the Assessing Officer reopened the assessment of both the years under consideration by issuing notice under section 148 of the Act. 4. Before the Assessing ... declared by the assessee. The Assessing Officer did not agree with the submissions made by the assessee. Based on the report given by the Investigation Wing, the Assessing Officer took the view that the share transactions shown by the assessee are bogus in nature and hence the sale value

Income Tax Officer-33(3) (3), Mumbai vs. Shri Sanajy Mahabir Maheshka, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 6168/MUM/2019[2011-12]Status: DisposedITAT Mumbai27 Jul 2023AY 2011-12

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

Section 148Section 68

DCIT Central Circle-2, Noida vs. Shiv Shakti Construction, Greater Noida

In the result, all the Revenue’s Appeals are dismissed

ITA 2839/DEL/2022[2020-21]Status: DisposedITAT Delhi27 Jul 2023AY 2020-21

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Harish Choudhary CAFor Respondent: Shri H.K. Choudhary, CIT-DR

books are merely book entries. The statement of the accountant was extracted in the assessment order. Based on the findings of the investigation wing on ‘other sundry creditors’, inquiries I.T.A. No. 2554 to 2559/Del/2022 & 2834 to 2839/Del/2022 7 were conducted by the Assessing Officer to seek specific details in this

DCIT Central Circle-2, Noida vs. Shiv Shakti Construction, Greater Noida

In the result, all the Revenue’s Appeals are dismissed

ITA 2838/DEL/2022[2019-20]Status: DisposedITAT Delhi27 Jul 2023AY 2019-20

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri Harish Choudhary CAFor Respondent: Shri H.K. Choudhary, CIT-DR