“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

ACIT CC-18 vs. Neena Hardeep Singh

Accordingly, this ground is allowed for statistical purposes

ITA 1421/DEL/2008[2004-2005]Status: DisposedITAT Delhi14 Jun 2023AY 2004-2005

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaacit, Vs. Mrs. Neena Hardeep Singh Central Circle-18, L-5, Hauz Khas Enclave, Room No. 327, 3Rd Floor New Delhi Ara Centre, E-2, Pan : Aarps4684B Jhandewalan Extn., New Delhi

Section 143(2)Section 143(3)Section 250

Hungary/Netherlands, however, the sales invoices and shipment of goods were received by assessee’s own persons in Hungary/Netherlands. In its investigation conducted by the Investigation Wing, Delhi it was revealed that Neena Hardeep Singh and Shri hardeep Nihal Singh visit frequently abroad and own M/s. Trans Europe (Textiles ... Revenue. Ld. AO has considered the export sales made to an entity in Netherland to be doubtful on the basis of report and investigation wing. The fact of matter is that in para no. 5.1 of the order of Ld. CIT(A) a list of 11 documents is mentioned which

Smt. Manju Gupta, Kota vs. ITO, Ward-1, Bharatpur

In the result, appeal of the assessee is allowed

ITA 143/JPR/2023[2015-16]Status: DisposedITAT Jaipur14 Jun 2023AY 2015-16

Bench: Or During The Course Of Hearing.”

For Appellant: Shri Rajendra Agarwal (C.A.)For Respondent: Smt Monisha Chaudhary (Addl. CIT) a

Section 147Section 54F

Ld.ITAT decided that “A perusal of the assessment order clearly shows that the Assessing officer was carried away by the report of the Investigation Wing Kolkata. It can be seen that the entire assessment has been framed by the Assessing Officer without conducting any enquiry from the relevant parties ... independent source or evidence but has merely relied upon the statements recorded by the Investigation Wing as well as information received from the Investigation Wing. It is apparent from the Assessment Order that the Assessing Officer has not conducted any independent and separate enquiry in the case of the assessee

Silmohan Gems Pvt Ltd. Company, Mumbai vs. DCIT, Circle-5(3)(1), Mumbai

In the result, the appeals of the assessee

ITA 472/MUM/2023[2012-13]Status: DisposedITAT Mumbai13 Jun 2023AY 2012-13

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

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

Rs.32,14,732/-. Subsequently, on receipt of information from the . Subsequently, on receipt of information from the . Subsequently, on receipt of information from the Investigation Wing of the Income Investigation Wing of the Income-tax Department that assessee tax Department that assessee obtained accommodation entry of bogus pur obtained accommodation ... sale of rough diamonds to the assessee. In view of the statement of Shri B view of the statement of Shri Bhanwarlal Jain, investigation wing of anwarlal Jain, investigation wing of the Income-tax Department intimated regarding bogus tax Department intimated regarding bogus nature of the tax Department intimated regarding

Silmohan Gems Pvt Ltd. Company, Mumbai vs. DCIT, Circle-5(3)(1), Mumbai

In the result, the appeals of the assessee

ITA 471/MUM/2023[2013-14]Status: DisposedITAT Mumbai13 Jun 2023AY 2013-14

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

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

DCIT 5(3)(1), Mumbai vs. Silmohan Gems Private Limted, Mumbai

In the result, the appeals of the assessee

ITA 450/MUM/2023[2012-2013]Status: DisposedITAT Mumbai13 Jun 2023AY 2012-2013

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

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

DCIT 5(3)(1), Mumbai vs. Silmohan Gems Private Limited, Mumbai

In the result, the appeals of the assessee

ITA 449/MUM/2023[2013-2014]Status: DisposedITAT Mumbai13 Jun 2023AY 2013-2014

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

For Appellant: Ms. Mitali Mehta a/wFor Respondent: Dr. Kishor Dhule, CIT-DR

Section 40A(3)Section 69C

Shri Salil Bhatia, Amritsar vs. Assistant Commissioner of Income Tax Central Circle, Amritsar

In the result, the appeal is allowed

ITA 60/ASR/2023[2013-14]Status: DisposedITAT Amritsar13 Jun 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 132Section 132ASection 143(3)Section 153A

during action under section 132A, of the income tax act, 1961. During the course of assessment proceedings, the AO received certain information from the investigation wing, and consequently, he raised the issue of long- term capital gains on the sale of shares in the case of assessee. He contended that

Ratroi Maa Trading P.Ltd, Delhi vs. ITO, Wazrd-21(1), New Delhi

ITA 7489/DEL/2018[2009-10]Status: DisposedITAT Delhi13 Jun 2023AY 2009-10

Bench: Shri Pradip Kumar Kedia & Shri Yogesh Kumar Us

For Appellant: Shri Mukesh Jain, CAFor Respondent: Shri R.S. Yadav, Sr.DR

Section 140Section 142(1)Section 143(3)Section 144Section 147Section 148

r.w.s 143(3) is contrary to law in the absence of any incriminating material to form reason to believe, as per the report of Investigation Wing and AO relied on, which only directs that the AO has to examine the details and after this examination only to determine whether there

Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad vs. Alpha Avenues Private Limited, Hyderabad

In the result, both the appeals filed by the Revenue are allowed for statistical purposes

ITA 1107/HYD/2017[2011-12]Status: DisposedITAT Hyderabad12 Jun 2023AY 2011-12

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)

Section 143(2)Section 56

such huge investments. He also referred to the disclosure of Rs. 10 crores made by Alpha Villas (P) Ltd during the survey by the Investigation Wing which is on account of Page 2 of 22 ITA Nos 1106 and 1107 of 2017 Alpha Villas Pvt Ltd investment from Kolkata based ... income profile to make such huge investments.  Disclosure of Rs. 10 crores made by M/s. Alpha Villas Pvt Ltd during the survey by the Investigation Wing which was on a/c of investment from Kolkata based Shell Company. The Assessing Officer relying on the assessment order of M/s. Bharathi Cements held

Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad vs. Alpha Villas Private Limited, Hyderabad

In the result, both the appeals filed by the Revenue are allowed for statistical purposes

ITA 1106/HYD/2017[2011-12]Status: DisposedITAT Hyderabad12 Jun 2023AY 2011-12

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)

Section 143(2)Section 56

Advantage Overseas Pvt.Ltd., Mumbai vs. CIT, CC-5(3), Mumbai

In the result, appeal of the assessee is dismissed

ITA 1254/MUM/2022[2012-13]Status: DisposedITAT Mumbai12 Jun 2023AY 2012-13

Bench: Shri Kuldip Singh & Shri Gagan Goyalm/S. Advantage Overseas Pvt. Ltd. 414, A-Wing Express Zone, Off Western Express Highway, Malad East Mumbai-400 097 Pan: Aaaeca8925F ...... Appellant Vs. Dcit Cc-5(3) Mumbai ..... Respondent

For Appellant: Shri Rushabh Mehta, Ld. ARFor Respondent: Shri Manoj Kumar Sinha, Sr. AR

Section 12ASection 138Section 143(3)Section 250Section 68

Return of the assessee was selected for scrutiny and assessed u/s. 143(3) at Rs 4, 43, 02,205/-. Subsequently the investigation wing provided the information that the assessee has undertaken the transaction with M/s. Ganpati Trading Co. amounting to Rs 25,39,000/-. Thereafter notice ... transactions with various entities. However, the notices were either returned un-served 5 M/s Advantage Overseas Pvt. Ltd. or no explanation was furnished. The investigation wing after making discrete enquiry with regard to fund trail recorded its findings that various beneficiaries including Assessee Company have brought unaccounted money in their

Vishal Range Diam Pvt. Ltd., Surat vs. Income Tax Officer, Ward 2(1)(1), Surat

In the result, ground No. 2 of the appeal is partly allowed

ITA 227/SRT/2023[2013-14]Status: DisposedITAT Surat12 Jun 2023AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini(Hearing In Virtual Court) Vishal Range Diam Pvt. Ltd., I.T.O., 10, R.T. Chamber, Dalagia Maahola, Ward 2(1)(1), Vs. Mahidharpura, Surat-395003. Surat. Pan: Aadcv 6738 J Appellant Respondednt

Section 143(3)Section 147Section 148Section 254(1)Section 68

held that Jurisdictional High Court in Peass Industrial Engineers Pvt. Ltd.(supra) held that information from Investigation Wing regarding bogus entries was sufficient for reopening the assessment. 5. On merit, the ld. CIT(A) held that the entry provider in his statement under Section 132(4) of the Act stated ... purchases either from Bhanwar Lal Jain or Rajendra Jain, whose cases were reopened by the Income tax Department, on the basis of information from Investigation Wing, upheld the addition to the extent of 6% of the transaction, by taking a view that only profit element embedded on such / similar transactions

Keval H Seth, Mumbai vs. ITO Ward 16(2)(1), Mumbai

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

ITA 418/MUM/2020[2007-08]Status: DisposedITAT Mumbai09 Jun 2023AY 2007-08

Bench: Shri Pavan Kumar, Hon’Blekeval H. Seth V. Ito, Ward 16(2)(1), 17-D Malabar Apartment Matrumandir, Nepeansea Road Tardeo Road, Mumbai- 400036 Mumbai- 400007 Pan: Afbps4180H

Section 132Section 143(1)Section 147Section 148Section 151Section 250

Gains of Rs.54.60.292/- thus making an addition of Rs.29,36,793/- without any evidence thereof. Without verifying the facts, merely relying on information from Investigation Wing and therefore completed the assessment in predetermined state of mind because all the transactions of sale were not entered into with one broker ... honour to kindly drop the re- assessment proceedings". 6. The AO was not satisfied with the explanations and relied on the information of the Investigation Wing and dealt at Para 11 of the order, since out of the total transaction value/LTCG of Rs.54,60,292/- an amount of Rs.25

ITO 24(1)(2), Mumbai vs. Shri Ashokkumar Murajmal Raimalani, Mumbai

In the result, appeal by the Revenue is partly allowed

ITA 3569/MUM/2019[2009-10]Status: DisposedITAT Mumbai09 Jun 2023AY 2009-10

Bench: Shri Vikas Awasthy& Shri S.Rifaur Rahmanआअसं.3569/मुं/2019 ("न.व. 2009-10) The Income Tax Officer -24(1)(2), Room No.605, Piramal Chambers, Jeejeebhoy Lane,Lalbaug, Parel, Mumbai 400 012 ...... अपीलाथ"/Appellant बनाम Vs. Shri Ashokkumar Murajmal Raimalani, 2Nd Floor, 108, Zaveri Bazar, Andheri (West), Mumbai 400 058. Pan: Aaapr-8617-A .....""तवाद"/Respondent अपीलाथ" "वारा/ Appellant By : Shri Ashok Kumar Kardam –Cit Dr ""तवाद" "वारा/Respondent By : Shri Ketan Shah सुनवाई क" "त"थ/ Date Of Hearing : 16/03/2023 घोषणा क" "त"थ/ Date Of Pronouncement : 09/06/2023 आदेश/Order Per Vikas Awasthy, Jm:

For Appellant: Shri Ashok Kumar Kardam –CIT DRFor Respondent: Shri Ketan Shah

Section 148Section 292B

Ld.CIT(A) is justified in deleting the addition made on account of artificial loss without appreciating the fact that the information was shared by investigation wing Mumbai after analyzing the data received from investigation wing Ahmadabad and also the said transaction was confirmed by M/s Motisons Commodities Pvt. Ltd that ... submitted that the assessment in the case of assessee for assessment year 2009-10 was reopened on the basis of information received from the Investigation Wing that the assessee is one of the beneficiary of a scam whereby artificial losses were generated through systematic misuse of National Multi Commodities Exchange

Ujjwal Microfinance Pvt Ltd, New Delhi vs. ITO Ward - 27(2), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 3877/DEL/2019[2011-12]Status: DisposedITAT Delhi09 Jun 2023AY 2011-12

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

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Rajendra Jha, Sr. DR

Section 142Section 144Section 147Section 148Section 151(1)

confirming the re-assessment proceedings on the basis of vague information, without forming AOs own opinion and only on the basis of report of Investigation Wing and mechanical opinion of higher authorities. 3. Because the Ld. CIT (Appeal) has erred in law and on facts in confirming ex - parte assessment ... into any transaction of whatsoever nature with White Collar Management Ltd. during the year under consideration. (b) We state that the report of the investigation wing is based on the wrong fact and confirm that we have not entered into any transaction with White Collar Management Ltd. during the year

Mesers S R Ingosts Private Limited, Raipur vs. Assistant Commissioner of Income Tax, Central Circle-1, Raipur

In the result Revised Ground no 4 of the assessee is partly allowed

ITA 4/RPR/2020[2011-12]Status: DisposedITAT Raipur09 Jun 2023AY 2011-12

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.04/Rpr/2020 (Assessment Year: 2011-2012) M/S S R Ingots Pvt. Ltd., Vs Acit, Cc-1, Raipur House No.16, Opp.Cg Gramin Bank, Choubey Colony, Raipur Pan No. :Aaics 5559 D (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee By : Shri Ajoy Kumar Singh & Smt. Surbhi Jain, Ars राज"व क" ओर से /Revenue By : Smt. Ila M. Parmar, Cit-Dr सुनवाई क" तार"ख / Date Of Hearing : 12/04/2023 घोषणा क" तार"ख/Date Of Pronouncement : 09/06/2023 आदेश / O R D E R Per Arun Khodpia, Am :

For Appellant: Shri Ajoy Kumar Singh & Smt. Surbhi JainFor Respondent: Smt. Ila M. Parmar, CIT-DR

Section 132Section 147Section 148Section 153ASection 68

satisfaction recorded by the Ld AO was not on the concrete facts but merely on the basis of information passed on by the investigation wing. Ld AO himself in his letter has categorically mentioned that “Copy of statement of Shri Vinod Kumar Jajoo, on the basis of which

Shri Nirmal Sharad Mutha, Ahmednagar vs. Assistant Commissioner of Income Tax, Circle- Ahmednagar, Ahmednagar

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

ITA 125/PUN/2023[2012-13]Status: DisposedITAT Pune08 Jun 2023AY 2012-13

Bench: Shri R.S. Syal, Hon.Vice- & Shri Partha Sarathi Chaudhury, Hon. & Nirmal Sharad Mutha, Vs Acit, Ahmednagar Circle, Plot No.83, Manik Nagar, Ahmednagar. Nagar-Pune Road, Ahmednagar. Pan: Afvpm 3572 R Appellant Respondent Assessee By : Shri Prasad S. Bhandari, Ca Revenue By : Shri Ramnath P. Murkunde, Dr Date Of Hearing : 01/06/2023 Date Of Pronouncement : 08/06/2023 O R D E R Per Partha Sarathi Chaudhury, Jm: This Appeal Preferred By The Assessee Emanates From The Order Of Commissioner Of Income Tax (Appeals)-2, Pune, Dated 03.03.2020 For A.Y.2012-13 As Per The Following Grounds Of Appeal:-

For Appellant: Shri Prasad S. Bhandari, CAFor Respondent: Shri Ramnath P. Murkunde, DR

Section 132Section 14ASection 68

Diamonds was run by his son in the benami name as Shri Ritesh Siroya. The AO further stated in the assessment order that the investigation wing, Mumbai during the course of search action in the case of Shri Bhanwarlal Jain Group, identified 70 benami concerns related to the employees, relatives

Assistant Commissioner of Income-Tax, Circle- 1(1), Bhilai vs. Shri Nitin Sankhla, Durg

In the result, grounds no 2 to 7 on this single issue of the appeal of the revenue are dismissed

ITA 98/RPR/2020[2017-18]Status: DisposedITAT Raipur08 Jun 2023AY 2017-18

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.98/Rpr/2020 (Assessment Year: 2017-18) Asstt. Commissioner Of Income Tax- Vs Shri Nitin Sankhla 1(1), Bhilai 1St Floor, Navkar Bullion, Above Navin Jeweller, Jawahar Chowk, Durg Pan No. :Bbups 4874 C (अपीलाथ" /Appellant) (""यथ" / Respondent) .. : Shri Ravi Agarwal, Ca "नधा"रती क" ओर से /Assessee By राज"व क" ओर से /Revenue By : Shri Ila M. Parmar, Cit- Dr सुनवाई क" तार"ख / Date Of Hearing : 02/06/2023 घोषणा क" तार"ख/Date Of Pronouncement : 08/06/2023 आदेश / O R D E R Per Arun Khodpia, Am :

For Respondent: Shri Ila M. Parmar, CIT- DR

Section 129Section 133(6)Section 142(1)Section 143(2)Section 68

these were earlier produced before Investigation Wingh in F.Y. 2016-17 i.e. after the sales were made and same were verified by the Investigation Wing also. This view of the ld. CIT(A) indicates that the assessee has maintained regular books of accounts, bills, vouchers and day to day stock

Disha Education Society, Raipur vs. Commissioner of Income Tax, Exemption, Bhopal

In the result ground of the appeal in the instant appeal of the assessee are allowed

ITA 60/RPR/2019[0]Status: DisposedITAT Raipur08 Jun 2023

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./ Ita No.32&60/Rpr/2019 (Assessment Year:) M/S Disha Education Society, Vs Commissioner Of Income Tax, Disha Crown, Katchana Road. Exemption, Bhopal Shankar Nagar, Raipur (Chhattisgarh) Pan No. :Aaatd5249C : Shri R.B.Doshi, Ca "नधा"रती क" ओर से /Assessee By राज"व क" ओर से /Revenue By : Shri V.K.Singh, Cit-Dr सुनवाई क" तार"ख / Date Of Hearing : 26/04/2023 घोषणा क" तार"ख/Date Of Pronouncement : 08/06/2023

For Respondent: Shri V.K.Singh, CIT-DR

Section 12A

Education Trust. Jankalyan Nidhi Jha Education Trust case of Jha Education Trust Poddar Education a) Information received i) Name of assessee was 1 from Investigation Wing. Trust mentioned by Shri KD Mumbai that during search in Suba, CA and Shri Jayesh Podar Group of Mumbai, Zanami DDIT (Inv) ) Except ... basis of such information registration could not be withdrawn. On another allegation by the department with respect to the information received from Investigation Wing, Mumbai that a search and seizure operation carried out in the case of Poddar Group of Mumbai and the DDIT ( Inv.) has found that the assessee

Disha Education Society, Raipur vs. Commissioner of Income Tax, Exemption, Bhopal

In the result ground of the appeal in the instant appeal of the assessee are allowed

ITA 32/RPR/2019[0]Status: DisposedITAT Raipur08 Jun 2023

For Respondent: Shri V.K.Singh, CIT-DR

Section 12A