“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

Dimpal Rajeshkumar Patel, Ankleshwar vs. Income Tax Officer, Ward 2(1), Bharuch

In the result, ground No1 of the appeal is allowed

ITA 14/SRT/2023[2013-14]Status: DisposedITAT Surat24 Jul 2023AY 2013-14

Bench: SHRI PAWAN SINGH (Judicial Member)

Section 131Section 143(2)Section 143(3)Section 148Section 254(1)Section 68Section 69C

hearing of the appeal.” 2. Facts in brief are that case of assessee was re-opened on the basis of information received from Investigation Wing of Kolkata, wherein it was informed that large number of penny stock companies, the share prices were artificially raised on the Stock Exchanges in order ... Dimpal R Patel The assessee was one of the beneficiary of LTGC on sale of one of such companies, which were identified by the investigation wing. On the basis of such information, the case of assessee was re-opened after recording reasons. Notice under section 148 dated 06.02.2017 was issued

Iwi Stationary Pvt. Ltd., Mumbai vs. ACIT, Circle- 3(2)(1), Mumbai

In the result, both the appeals filed by the assessee are allowed

ITA 1572/MUM/2023[2014-15]Status: DisposedITAT Mumbai20 Jul 2023AY 2014-15

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

Section 132Section 143(1)Section 148Section 14ASection 68

Stationary Pvt. Ltd. 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

Iwi Stationary Pvt. Ltd., Mumbai vs. ACIT, Circle- 3(2)(1), Mumbai

In the result, both the appeals filed by the assessee are allowed

ITA 1571/MUM/2023[2013-14]Status: DisposedITAT Mumbai20 Jul 2023AY 2013-14

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

Section 132Section 143(1)Section 148Section 14ASection 68

Dy.Commissioner of Income Tax 19(3), Mumbai vs. Suraj Exports, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 1277/MUM/2023[2007-2008]Status: DisposedITAT Mumbai20 Jul 2023AY 2007-2008

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.1277/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2007-08) Dcit-19(3) बिधम/ Suraj Exports Matru Mandir, Room De-8011/12/13 Bharat Vs. No.206, Grant Road, Diamond Bourse Bandra Mumbai-400007. Kurla Complex Bandra (East), Mumbai-400051. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaafs3513J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Shri Ram Krishna Kedia (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 04/07/2023 घोषणा की तारीख /Date Of Pronouncement: 20/07/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Revenue Against The Order Of The Ld. Commissioner Of Income Tax/Nfac, Delhi Dated 20.02.2023 For Assessment Year 2007-08. 2. The Main Grievance Of The Revenue Is Against The Action Of The Ld. Cit(A) Deleting The Entire Addition Made By Ao (Purchases To The Tune Of Rs.3,79,50,581/-) & Restricting It To 8% N.P Of Such Purchases. 3. Brief Facts Are That The Assessee Had Filed Its Return Of Income On 11.10.2007 Declaring Total Income At Rs.53,24,567/-. Later, The Case Of The Assessee Was Reopened On The Basis Of Information Received From The Dgit(Inv.), Mumbai That During The Search & Survey Action Conducted In This Case Of Shri Bhanwarlal Jain & Family On 03.10.2013, The Investigation Wing Came To Know That Shri Bhanwarlal Jain Controlled Many Companies/Firm/ Proprietory

For Appellant: NoneFor Respondent: Shri Ram Krishna Kedia (Sr. AR)

Section 143(3)

from the DGIT(Inv.), Mumbai that during the search and survey action conducted in this case of Shri Bhanwarlal Jain & Family on 03.10.2013, the Investigation Wing came to know that Shri Bhanwarlal Jain controlled many companies/Firm/ proprietory 2 A.Y. 2007-08 Suraj Exports concerns. According to the AO, the investigation ... purchases-Bhanvarlal Jain group-Hawala concern 6 A.Y. 2007-08 Suraj Exports addition cannot be made of entire purchase based on the report of Investigation wing- when sales are accepted purchases cannot be rejected-Estimation of profit of 3% of bogus purchases- Held to be justified- Appeal of revenue

ACIT, Central Circle- 4, New Delhi vs. Sanjay Duggal, Faridabad

ITA 3532/DEL/2018[2009-10]Status: DisposedITAT Delhi20 Jul 2023AY 2009-10

Bench: Or During The Course Of Hearing Of The Appeal.”

For Appellant: “1. The

Section 132Section 143(2)Section 147Section 148Section 153ASection 68

never provided with an opportunity of cross examination of any of officers of M/s Jagatjit Industries Ltd/ other associates on the statement of Revenue / Investigation wing has relied upon and the Ld AO has passed the impugned assessment order; 5 The on the facts and in the circumstances

Sky Gem, Mumbai vs. DCIT, CC-1(1), Mumbai

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

ITA 786/MUM/2023[2008-09]Status: DisposedITAT Mumbai19 Jul 2023AY 2008-09

Bench: Shri Pavan Kumar Gadale, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blesky Gem V. Dcit, Central Circle-1(1) Cc – 2081, G Block Room No. 905, 9Th Floor Bharat Diamonds Bourse Pratishtha Bhavan Bandra Kurla Complex Maharishi Karve Road Bandra (E), Mumbai -400051 Mumbai - 400020 Pan: Aayfs8765J (Appellant) (Respondent) Assessee Represented By : Shri Suchek Anchaliya & Shri Tushar Nagori Department Represented By : Ms. Kavita Kaushik

Section 143(1)Section 143(2)Section 147Section 148Section 68

lower authorities. 10. Considered the rival submissions and material placed on record, we observe from the record that Assessing Officer received information from investigation wing about the possible accommodation entries. At that point of time, Assessing Officer had reasons to believe that the income has escaped. Therefore, we are inclined ... expiry of four years Page No. 7 Sky Gem from the end of the assessment year, on the basis of information received from the investigation wing about the bogus nature of transactions entered by Shri Bhanwarlal Jain group. Even though the AO has mentioned the reasons that there was failure

Vimal Kishor Shah, Mumbai vs. ITO Ward-27(3)(1), Mumbai

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

ITA 1499/MUM/2023[2014-2015]Status: DisposedITAT Mumbai19 Jul 2023AY 2014-2015

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

Section 10(38)Section 147Section 68Section 69

perused the record. The assessee is an individual and deriving income by way of salary, capital gains and income from other sources. The Investigation Wing of the Income Tax Department found out that certain concerns floated by Rajendra Jain Group are providing accommodation entries in the form of purchase ... been subjected to investigation by the SEBI. We also noticed that the Assessing Officer has entirely relied upon the report given by the investigation wing without making further investigation in order to find out whether the assessee was part of the group which indulged in rigging the price

Vimal Kishor Shah, Mumbai vs. ITO Ward-27(3)(1), Mumbai

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

ITA 1498/MUM/2023[2011-2012]Status: DisposedITAT Mumbai19 Jul 2023AY 2011-2012

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

Section 10(38)Section 147Section 68Section 69

Bhandari Gold and Jewellers Private Limited, Mumbai vs. CIT (Appeal), NFAC - Delhi

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

ITA 1619/MUM/2022[2017-2018]Status: DisposedITAT Mumbai19 Jul 2023AY 2017-2018

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Bledcit – 6(1)(2) V. M/S. Bandari Gold & Jewellers Pvt. Ltd., 407, Bussaudyog Bhavan Room No. 538B, 5Th Floor Tokersi, Jivraj Road, Sewree Aayakar Bhavan, M.K. Road Mumbai - 400015 Mumbai - 400020 Pan: Aadcb1291J (Appellant) (Respondent)

Section 143(3)Section 68

Assessee had large cash deposits in bank account during the demonetization period. 3. During the course of Survey action carried out at premises by investigation wing, Mumbai, the officers team have physically verified the stock kept. There was no discrepancy found between physical stock Page

Cy. CIT 6(1) (2), Mumbai vs. M/S. Bhandari Gold & Jewellers Pvt. Ltd, Mumbai

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

ITA 1564/MUM/2022[2017-18]Status: DisposedITAT Mumbai19 Jul 2023AY 2017-18

Section 143(3)Section 68

Income Tax Officer Ward-4(2)(4), Mumbai vs. M/S.Lucky Star International Private Limited, Mumbai

ITA 5691/MUM/2017[2010-11]Status: DisposedITAT Mumbai19 Jul 2023AY 2010-11

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

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

income filed for the year under consideration was processed u/s 143(1) of the Act. Subsequently, the assessing officer received information from the Investigation wing that they have conducted search in the hands of Shrish C Shah and his associates on 09-04-2013, wherein it was found that ... actually received share application money from the above said parties. However, the AO did not accept the genuineness of receipts as the investigation wing has given a report that the above said companies were providing only accommodation entries. The AO also relied upon the statement given by Shri Shrish

Standard Tele Towers Pvt. Ltd., New Delhi vs. DCIT, Circle-24(2), New Delhi

ITA 9761/DEL/2019[2010-11]Status: DisposedITAT Delhi19 Jul 2023AY 2010-11

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

Section 132(4)Section 143(3)Section 147Section 148

consideration. Ld. AO in para 6 at page 2 of the assessment order Ld. 2. AO again has made reference to the information from investigation wing and further alleges that the contract awarded by assessee to M/s Dingle Buildcon Pvt. Ltd. was further subcontracted by it to 4 entities namely

Narendra Kumar, New Delhi vs. ITO, Ward- 44(2), New Delhi

In the result, Ground No. 1 of the assessee is allowed

ITA 1218/DEL/2019[2012-13]Status: DisposedITAT Delhi19 Jul 2023AY 2012-13

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

For Appellant: & Sh. Anchit Jain, CAFor Respondent: Sh. Arvind Kumar Bansal

Section 132Section 132(4)Section 147Section 148Section 153CSection 68

reasons recorded do not reflect any satisfaction of the Assessing Officer regarding escapement of income but are based upon borrowed satisfaction of the Investigation Wing of the department. That the Learned CIT(A), failed to acknowledge that nothing has been done by the AO to prove that any capitation

ITO, New Delhi vs. M/S. Finwiz Capital Services Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 3498/DEL/2017[2008-09]Status: DisposedITAT Delhi19 Jul 2023AY 2008-09

Section 144Section 147Section 148Section 151Section 68

notice to the assessee and proceeded to frame assessment u/s 144 read with section 147 of the Act. Based on the report of the investigation wing, New Delhi, wherein it had come t0o notice that Shri Dharmendar Kumar, Proprietor of M/s Sidh Trading Company and M/s Pride Trade Agency ... show cause notice issued by the ld. AO. But we find that the ld. AO had merely relied on the observation of the investigation wing of income tax department, delhi without making any independent examination of Shri R N Aggarwal from his side. The ld.AO had not brought on record

Commissioner of Income Tax vs. Spirit Global Construction Pvt Ltd

The appeal is disposed of in the aforesaid terms

ITA/191/2018HC Delhi18 Jul 2023

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 132Section 143(1)Section 147

independent application of mind by the AO, at that, he had based his decision to reopen his assessment on the information received from the investigation wing. 14. It is against this backdrop that the appellant/revenue has preferred the instant appeal. Submissions of Counsels: 15. We have perused the record. Arguments

Mrs Sunita Shyam Malpani, Mumbai vs. Income Tax Officer, Ward 25(1)(3), Mumbai

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

ITA 344/MUM/2023[2010-2011]Status: DisposedITAT Mumbai18 Jul 2023AY 2010-2011

Bench: Shri Pavan Kumar Gadalesunita Shyam Malpani, Vs. Ito 25(1)(3), 701,Plot No.117, Room No.703, Karanapartment, Kautilyabhavan, Lokhandwalacomplex, Bandra Bkc, Andheri (W), Mumbai-400051. Mumbai-400053. "थायी लेखा सं./जीआइआर सं.Pan/Gir No.Acppm8552J (अपीलाथ"/Applicant) (""यथ"/Respondent)

Section 10Section 143Section 144ASection 148Section 250Section 68Section 69C

shares purchase and sale transactions and also relied on the various facts of shares price trends, modus operandi and the report of the kolkata investigation wing and has doubted the earning of Long Term Capital Gains (LTCG). The A.O finds that 5 ITA . No. 344/MUM/2023 (A.Y.: 2010-11 SUNITA SHYAM ... based his addition u/s 68 of the Act on the basis of statement of the entry operator and information received from the Investigation Wing of the Department. However in the statement of entry operator no question was ever put to the entry operator regarding transaction through the companies, through which

Meenu Ajay Pathak, Mumbai vs. I.T.O.- 32(2)(3), Mumbai

In the result, the appeal by the assessee is dismissed

ITA 155/MUM/2023[2015-16]Status: DisposedITAT Mumbai18 Jul 2023AY 2015-16

Bench: Shri Om Prakash Kant & Shri Sandeep Singh Karhail

For Appellant: Shri Jitendra SinghFor Respondent: Smt. Mahita Nair

Section 234ASection 250Section 68Section 69C

sale of scrips of M/s Sunrise Asian Ltd. During the assessment proceedings, the Assessing Officer (“AO”) considered the information received from the Investigation Wing as well as the statement recorded, during the course of survey and search proceedings, of Mr. Vipul Vidur Bhatt, who has admitted to having controlled

M/S. Steecon Infrastructure, Jodhpur vs. ITO, Ward-1(4), Jodhpur

In the result, the appeal of the assessee is dismissed

ITA 61/JODH/2019[2012-13]Status: DisposedITAT Mumbai18 Jul 2023AY 2012-13

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2012-13 M/S Steecon Infrastructure Income Tax Officer 1(4) 85, Subhash Nagar, Pal Road, Paota Jodhpur- 242008 Vs. Jodhpur- 342008 Pan No. Acdfs3423Q Appellant Respondent

For Appellant: Mr. Piyush Chajed and Mr SumitFor Respondent: Mr. Virabhadra S. Mahajan, AR

Section 131Section 142(1)Section 143(3)Section 147Section 148

income for the year under consideration i.e. AY 2012-13 was filed by the assessee. Subsequently, the Assessing Officer received an information from the Investigation wing of the Income-tax department Jodhpur, dated 15/07/2014 that assessee in the civil suit filed before the Additional Civil Judge, Jodhpur, has claimed

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

In the result, appeal of the assessee is allowed

ITA 245/JPR/2023[2014-15]Status: DisposedITAT Jaipur18 Jul 2023AY 2014-15

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

For Appellant: Shri Mukesh Khandelwal (C.A.)For Respondent: Shri C.P. Meena (Addl.CIT) a

Section 132(4)Section 142(1)Section 143(2)Section 143(3)

search and seizure action under section 132 of the Act was carried out in the case of group concerns of Sh. Bhanwarlal Jain by Investigation Wing. Mumbai. In the said search and seizure action various incriminating documentary evidence were found and seized. During the course of search, it was found ... facts: (1) 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 is found that this group was an entry provider indulging in providing accommodation entries pertaining to bogus purchases to various parties

Late Sri Ongole Venkata Krishna Manikyala Rao (HUF) Rep by Sri Ongole Venkata Subba Rao, Ongole vs. ACIT, Ward-2, Ongole

In the result, the appeal of the assessee in ITA

ITA 316/HYD/2023[2012-13]Status: DisposedITAT Hyderabad17 Jul 2023AY 2012-13

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Sri Kiran ManoharFor Respondent: Sri Jeevan Lal Lavidiya, CIT-DR

Section 144Section 147Section 148Section 2(11)Section 69A

late Ongole Venkata Krishna Manikyala Rao, who passed away on 18.07.2011. As per the information obtained from Intelligence and Criminal Investigation Wing of the Department, assessee was in receipt of interest income from fixed deposits, sold immovable property and made huge cash deposits in bank accounts, however