“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

Deputy Commissioner of Income Tax, Centre-4(1)(1), Mumbai vs. Ajmera Associates Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed and the cross objection filed by the assessee is allowed

ITA 1401/MUM/2022[2010-11]Status: DisposedITAT Mumbai28 Jun 2023AY 2010-11

Bench: Shri B R Baskaran, Hon’Ble & Shri Narender Kumar Choudhry, Hon’Bledcit4(1)(1), Ajmera Associates Ltd., 63/67, Ajmera House, 4Th Floor, Mumbai Vs. L T Marg, Pathakwadi, Mumbai 400 002. Pan Aadca7062J (Appellant) (Respondent)

For Appellant: Ms. Dinkle HariyaFor Respondent: Smt Shailja Rai

Section 132Section 143(3)Section 153ASection 68

incriminating material, which revealed that the impugned loans are bogus in nature. The AO has made the addition on the basis of report of investigation wing, which cannot be considered as the incriminating material found during the course of search. Accordingly, in the absence of any incriminating material relating

Aj Energy Private Limited, Delhi vs. ITO, Ward-1(1), Delhi

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

ITA 1190/DEL/2022[2011-12]Status: DisposedITAT Delhi28 Jun 2023AY 2011-12

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Shri Ved Jain, AdvFor Respondent: Shri Manvendra Goel, CIT(DR)

Section 142(3)Section 143(3)Section 147Section 68Section 69C

facts and in law in rejecting the contention of the assessee that same has been made merely relying on the report of the investigation wing and without application of his own mind. 14. On the facts and circumstances of the case the NFAC has erred both on facts

DCIT, Circle-7(1), New Delhi vs. Delhi Academy of Medical Sciences Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 842/DEL/2020[2014-15]Status: DisposedITAT Delhi28 Jun 2023AY 2014-15

Bench: Or During The Hearing Of This Appeal.”

Section 131Section 132Section 133(6)Section 133ASection 143(3)

entered into with the assessee company. 5. The Ld. A.O. received information that a search u/s 132 of the Act was conducted by the Investigation Wing, New Delhi in the case of Sh. Sanjay Bhandari, who is a Director in M/s OIS Advance Technology Private Limited and M/s Offset India

Edge Infrabuild Pvt. Ltd., New Delhi vs. DCIT Circle-8(1), New Delhi

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

ITA 5136/DEL/2019[2010-11]Status: DisposedITAT Delhi28 Jun 2023AY 2010-11

Section 143(2)Section 147Section 68

particular, relying on the borrowed satisfaction without any Independent inquiry, without any independent application of mind, based on some investigation wing report, without any tangible material to link the fact of the transaction of the appellant and thus the entire assessment proceedings initiated u/s 147/148 of the Act is without ... duly been emerged in the investigation carrion by ADIT, Inv. Wing -6(3), New Delhi. It is also apparent from the information received from investigation wing that these companies have transferred fund to the assessee company in lieu of cash. The director of these shell companies are found dummy

Goldline Dealers Pvt. Ltd., Kolkata vs. I.T.O., Ward - 9(2), Kolkata

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

ITA 483/KOL/2022[2012-2013]Status: DisposedITAT Kolkata27 Jun 2023AY 2012-2013

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.483/Kol/2022 Assessment Year: 2012-13 Goldline Dealers Pvt. Ltd.…………………................................……Appellant 5/1, Clive Row, 4Th Floor, Kolkata-1. [Pan: Aaecg0745M] Vs. Ito, Ward-9(2), Kolkata…...…….............……........……...…..…..Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri P. P. Barman, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 10, 2023 Date Of Pronouncing The Order : June 27, 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 29.06.2022 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 Agitated Against The Addition Of Rs.5,88,50,000/-, Allegedly Received By The Assessee By Way Of Accommodation Entry Provided By M/S Lakshya Merchants Pvt. Ltd. 3. In This Case, The Original Assessment Order U/S 143(3) Was Passed On 23.03.2015 Assessing The Income Of Rs.4,70,26,000/- As Against The Nil Income Shown By The Assessee. Thereafter, The Assessing Officer

Section 143(3)Section 250

assessee. Thereafter, the Assessing Officer I.T.A No.483/Kol/2022 Assessment year: 2012-13 Goldline Dealers Pvt. Ltd reopened the assessment on the information of the investigation wing that the assessee had received accommodation entry from M/s Lakshya Merchants Pvt. Ltd. Since, the assessee did not submit the necessary explanations/documents in this regard

Evergreen Agency Private Limited, Kolkata vs. PCIT-2, Kolkata

In the result, the appeal of the assessee stands allowed

ITA 138/KOL/2022[2011-12]Status: DisposedITAT Kolkata27 Jun 2023AY 2011-12

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.138/Kol/2022 Assessment Year: 2011-12 Evergreen Agency Pvt. Ltd…………………................................……Appellant Maurya Patna, South Gandhi Maidan, Patna-800001. [Pan: Aaace5390A] Vs. Pcit, Kolkata-2…………………….............……........……...…..…..Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 04, 2023 Date Of Pronouncing The Order : June 27, 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 17.03.2021 Of The Principal Commissioner Of Income Tax (Hereinafter Referred To As The ‘Pcit’) Agitating The Exercise Of His Revision Jurisdiction U/S 263 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. There Is Note By The Registry Of Delay Of 302 Days In Filing Of The Appeal. A Separate Application For Condonation Of Delay Has Been Filed, Wherein, It Has Been Pointed Out That The Delay Period Was Pertaining To Covid-2019 Pandemic Period. In View Of The Directions Of The Hon’Ble

Section 132Section 139(1)Section 143(1)Section 147Section 148Section 14ASection 263Section 68

conducted on Singhal group of companies at Raipur, Chhattisgarh and statement of one Shri Vinod Kumar Jajoo was recorded by the investigation wing on 05.10.2017, wherein, he admitted of providing accommodation entries to various beneficiaries. As per the information, the assessee had received Rs.10,00,000/- during

Raigarh Jute & Textile Mills Ltd., Kolkata vs. A.C.I.T., Circle-8(2), Kolkata

In the result, the appeal of the assessee stands allowed

ITA 2286/KOL/2019[2014-15]Status: DisposedITAT Kolkata27 Jun 2023AY 2014-15

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A No.2286/Kol/2019 Assessment Year: 2014-15 Raigarh Jute & Textile Mills Ltd...................................................……Appellant 36, Chowringhee Road, Kolkata-700071. [Pan: Aabcr2034B] Vs. Acit, Circle-8(2), Kolkata...............................……........……...…..…..Respondent Appearances By: Shri Akkal Dudhewala, Advocate, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : May 16, 2023 Date Of Pronouncing The Order : June 27, 2023 आदेश / Order संजय गग", "या"यकसद"य"वारा/ Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 13.03.2019 Of The Commissioner Of Income Tax (Appeals)-15, 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 Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1 That On The Facts & In The Circumstances Of The Case, The Ld. Cit(A)- 15 Erred In Holding That The Assessing Officer Was Justified In Disallowing & Adding Back The Appellant'S Claim For Deduction Of Loss Suffered Of Rs.4,02,00,360/- Suffered By The Appellant In Its Share Trading Business. 2 That On The Facts & In The Circumstances Of The Case, The Ld. Cit(A)-15 Erred In Confirming The Action Of The Assessing Officer Of Invoking The

Section 14ASection 250

conducted on the recognized stock exchange. The Assessing Officer however did not accept the aforesaid explanation of the assessee and further referred to the investigation wing report of the income tax department and observed that income tax department had searched/surveyed 32 share broking entities and more than 20 entry operators ... Assessing Officer could not point out any defect in the same. That the Assessing Officer has simply relied upon the observation of the Investigation Wing and held that the shares of these companies were being stock. However, the assessee had obtained a write up of the above companies including their

M/S Usha Vinod Parekh (Lr of Late Shri Vinodkumar Sheshmal Parekh), Mumbai vs. The Dy. CIT, Circle-22(1) (Erstwhile the Asstt. CIT, Circle-21(3), Mumbai

ITA 563/MUM/2023[2010-2011]Status: DisposedITAT Mumbai27 Jun 2023AY 2010-2011

For Appellant: Shri M B SanghviFor Respondent: Ms. Naina Krishnakumar

Section 143(3)Section 147Section 148Section 250Section 68

total income of the Assessee at INR 36,74,000/- for the assessment year 2010-11. Subsequently, on the basis of report of the Investigation Wing, Kolkata the assessment for the Assessment Year 2010-11 was reopened as the Assessee had earned long-term capital gain income arising from sale ... Assessee had received INR 16,09,340/- from sale of 15,376 shares of the Company. Relying upon the report of the Kolkata Investigation, Wing the Assessing Officer formed an opinion that the Assessee had booked bogus long-term capital gains and therefore, a show because notice, dated 30/11/2016 whereby

Essel Mining & Industries Limited, Mumbai vs. Deputy Commissioner of Income Tax - Central Circle 1(4), Mumbai

Appeal is dismissed

ITA 1018/MUM/2018[2014-15]Status: DisposedITAT Mumbai27 Jun 2023AY 2014-15

For Appellant: Shri Yogesh TharFor Respondent: Shri Biswanath Das

Section 143(3)Section 14ASection 153ASection 32ASection 801ASection 80I

total income of INR 431,30,32,630/-. 4.2. A search & seizure action under Section 132(1) of the Act was conducted by the Investigation Wing, Delhi on the basis of information received from the Central Bureau of Investigation (CBI) on 15/10/2013 that during a search action being carried

ACIT, CC-14, New Delhi vs. Pramaditya, Rajasthan

In the result, the appeal of the revenue is dismissed and cross objection of the assessee is allowed

ITA 1861/DEL/2021[2017-18]Status: DisposedITAT Delhi27 Jun 2023AY 2017-18

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2017-18 Acit, Vs Pramaditya, Cc-14, 67, Mahaveer Nagar, 2Nd Maharani Farm, New Delhi. Durgapur, Jaipur, Rajasthan – 302018. Pan: Ajppp2281E Co No.29/Del/2022 Assessment Year: 2017-18 Pramaditya, Vs. Acit, 67, Mahaveer Nagar, Cc-14, 2Nd Maharani Farm, New Delhi. Durgapur, Jaipur, Rajasthan – 302018. Pan: Ajppp2281E

For Appellant: Shri Hiren Mehta, CAFor Respondent: Ms Sapna Bhatia, CIT, DR

Section 127Section 132Section 143(3)Section 153CSection 69A

Paramaditya. Accordingly, it was submitted that the contents of the affidavit filed by Shri Purushottam Lal Soni was accepted to be true by the investigation wing of the department. Further , it was submitted on behalf of the assessee that the assessee had not entered into any transactions with any person ... find that an affidavit dated 21.02.2017 filed by Shri Purushottam Lal Soni was never refuted by the revenue. This was duly filed before the investigation wing during post search enquiry proceedings itself. We find that various statements were recorded from Shri Purushottam Lal Soni and Shri Vikram Soni

Palm Tracom LLP, New Delhi vs. ITO Ward - 38(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1944/DEL/2020[2011-12]Status: DisposedITAT Delhi27 Jun 2023AY 2011-12

Bench: Shri C.M. Gargpalm Tracom Llp, Vs. Ito, Shop 103, Ff, Deepali Ward-38(1), Chowk, Csc-Ii, Up Samaj, New Delhi Pitampura, New Delhi- 110034 (Appellant) (Respondent) Pan:Aaqfp8495G Assessee By : Ms. Rano Jain, Adv Revenue By: Shri Sumes Swani, Sr. Dr Date Of Hearing 05/04/2023 Date Of Pronouncement 27/06/2023

For Appellant: Ms. Rano Jain, AdvFor Respondent: Shri Sumes Swani, Sr. DR

Section 147Section 148Section 151Section 68

only on the basis of borrowed satisfaction and in absence of independent application of mind to the material received by the AO from the Investigation Wing. The AO could not have valid reasons to believe that income has escaped assessment only on the basis of report of Investigation Wing. Therefore ... page 21 and 22 of the assessee’s paper book, and submitted that the AO property followed and analyzed the material received from the Investigation Wing and thereafter have valid reasons to believe that income has escaped assessment for the relevant period therefore, the legal ground

Uttam Ghewarchand Shrishrimal, Mumbai vs. ITO 19(3)(5), Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 716/MUM/2023[2011-12]Status: DisposedITAT Mumbai26 Jun 2023AY 2011-12

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 143(1)Section 147Section 148

independent belief that there is an escapement of income rather than merely relying on the information forwarded by the Sales Tax Authorities and the Investigation Wing of the Income Tax Department. 2 ITA 716/Mum/2023 Uttam Ghevvarchand Shrishrimal 2. On the facts and circumstances of the case

Khazana Bazar Pvt. Ltd., Surat vs. Income Tax Officer, Ward - 1(1)(3), Surat

In the result, the appeal filed by the assessee is partly allowed to the extent indicated above

ITA 334/SRT/2022[2014-15]Status: DisposedITAT Surat26 Jun 2023AY 2014-15

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.333/Srt/2022 Assessment Year: (2014-15) (Physical Hearing) The Ito, Ward-1(1)(3), Vs. M/S. Khazana Bazar Pvt. Ltd., Surat. C-104, Radha Raman Textile Market, Saroli, Surat- 395010. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aafck0726P (Assessee) (Respondent) आयकर अपील सं./Ita No.334/Srt/2022 Assessment Year: (2014-15) M/S. Khazana Bazar Pvt. Ltd., Vs. The Ito, Ward-1(1)(3), C-104, Radha Raman Textile Surat. Market, Saroli, Surat- 395010. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aafck0726P (Assessee) (Respondent)

Section 133(6)Section 143(3)

Gautam Jain, and Dermichnad Jain ground cases were reopened on the basis of information received from DGIT (Investigation) Mumbai. In the information received from Investigation Wing, Mumbai it was informed that a search and seizure action was carried out by Investigation wing- Mumbai on Bhanwarlal Jain Group, which resulted ... part of big scam like Bhanwarlal Jain, Rajendra Jain, Gautam Jain and Dermichand Jain, in their cases, the investigation was conducted by the Investigation wing and statements were recorded under section 132(4) of the Act which were found by the Department true and corroborate with the other evidences, which

Income Tax Officer, Ward-1(1)(3), Surat vs. M/S. Khazana Bazar Private Limited, Surat

In the result, the appeal filed by the assessee is partly allowed to the extent indicated above

ITA 333/SRT/2022[2014-15]Status: DisposedITAT Surat26 Jun 2023AY 2014-15

Section 133(6)Section 143(3)

Dy. Commissioner of Income Tax, CC, Vapi vs. Poonam Developers LLP, Dadra & Nagar Haveli (Ut)

In the result, these Cross-Objections Nos

ITA 320/SRT/2022[2019-20]Status: DisposedITAT Surat26 Jun 2023AY 2019-20

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

Section 143(3)

Counsel also submitted written submission, which is reproduced below: “A survey u/s. 133A was conducted in M Poonam group on 21.02.2018 by the investigation wing, Vapi at 3 premises namely M Poonam Developers, M/s Lotus Infra and M Poonam Construction. Accordingly, cases of the appellant were selected for assessment

Dy. Commissioner of Income Tax, CC, Vapi vs. Poonam Developers LLP, Dadra & Nagar Haveli (Ut)

In the result, these Cross-Objections Nos

ITA 319/SRT/2022[2018-19]Status: DisposedITAT Surat26 Jun 2023AY 2018-19

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

Section 143(3)

Dy. Commissioner of Income Tax, CC, Vapi vs. Poonam Developers LLP, Dadra & Nagar Haveli (Ut)

In the result, these Cross-Objections Nos

ITA 318/SRT/2022[2017-18]Status: DisposedITAT Surat26 Jun 2023AY 2017-18

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

Section 143(3)

Asst. Commissioner of Income Tax, Central Circle-3, Surat vs. Ankul Anurag Agarwal, Surat

In the result, appeal filed by the Revenue is dismissed

ITA 315/SRT/2022[2016-17]Status: DisposedITAT Surat26 Jun 2023AY 2016-17

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.315/Srt/2022 Assessment Year: (2016-17) (Physical Hearing) The Acit, Central Cicle-3, Vs. Ankul Anurag Agarwal, Surat. A-2, 903, Salasar Palance-1, Near: Vastugram Vesu, Surat- 395007. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aespa7850E (Assessee) (Respondent) Assessee By Shri Vinod Kumar, Sr. Dr Shri Rasesh Shah, Ca Respondent By Date Of Hearing 10/05/2023 Date Of Pronouncement 26/06/2023

Section 132Section 143(3)

Deed of the Flat No.C-302, Florence, Vesu, Surat (vide paper book page nos.26 to 47) (ix) Submission filed by M/s. Param Properties before ITO (Investigation Wing), Surat (vide paper book page nos.48 to 56) (x) Acknowledgment of return of income along with computation of total income of AY.2017-18 (vide paper

Dy. Commissioner of Income Tax, CC, Vapi vs. M/S. M Poonam Developers, Valsad

In the result, these Cross-Objections Nos

ITA 286/SRT/2022[2019-20]Status: DisposedITAT Surat26 Jun 2023AY 2019-20

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

Section 143(3)

Dy. Commissioner of Income Tax, CC, Vapi vs. M/S. M Poonam Developers, Valsad

In the result, these Cross-Objections Nos

ITA 285/SRT/2022[2018-19]Status: DisposedITAT Surat26 Jun 2023AY 2018-19

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

Section 143(3)