← All Phrases

“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
97
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
90
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
81
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
78
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

Gurpreet Singh (HUF), New Delhi vs. ITO Ward 41(3), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 2839/DEL/2019[2015-16]Status: DisposedITAT Delhi26 May 2023AY 2015-16
For Appellant: Shri Gurpreet Singh, ARFor Respondent: Shri Om Prakash, Sr. DR
Section 10(38)Section 115BSection 68

share holder investor and has no link with Anand Rathi Group of companies or any broker or any entity linked with investigation report of investigation wing of Kolkata and also does not have any linked with company KAPPAC PHARMA therefore addition may kindly be deleted and assessee may kindly

M/S. Patel Ambalal Hargovandas & Co., Surat vs. The DCIT, Central Circle-2, Surat

In the results, appeal filed by Revenue (in IT(SS)A Nos

ITA 185/SRT/2022[2020-21]Status: DisposedITAT Surat26 May 2023AY 2020-21

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं/.It(Ss)A No.49/Srt/2022 Assessment Year: (2019-20) (Physical Hearing) The Acit, Central Circle-2, Vs. Rasikbhai Narottamdas Patel, Surat. Flat No.9-10, Mahavir Nagar Co.Op H.S. Ltd., Bldg-12, Nr. Gayatri Mandir, Udhna Magdalla Road, Surat – 395007. "थायीलेखासं/.जीआइआरसं/.Pan/Gir No.: Adgpp4550M (Appellant) (Respondent) आयकर अपील सं/.It(Ss)A No.86/Srt/2022 Assessment Year: (2015-16) The Dcit, Central Circle-2, Vs. Ashish Karamshibhai Koshiya, Surat. 40, Jivandeep Soceity, Singanpor Road, Katargam, Surat, Gujarat – 395004. "थायीलेखासं/.जीआइआरसं/.Pan/Gir No.: Aojpk1118G (Appellant) (Respondent) आयकर अपील सं/.Ita No.185/Srt/2022 Assessment Year: (2020-21) M/S. Patel Ambalal Hargovandas Vs. The Dcit, Central Circle-2 & Co., Surat. 5/725, Haripura, Bhavaniwad, Opp. Dhobi Sheri, Surat – 395003. "थायीलेखासं/.जीआइआरसं/.Pan/Gir No.: Aadfp2517N (Appellant) (Respondent) Appellant By Shri Ashok B. Koli, Cit(Dr) Shri Vartik Choksi, Shri Biren Shah & Shri Respondent By Nitin Gheewala, Ar Date Of Hearing 26/04/2023 Date Of Pronouncement 26/05/2023 आदेश /O R D E R Per Bench:

Section 132Section 143(3)Section 292CSection 69C

above contentions of both the parties, we also observe that admittedly, the survey was conducted on Shri Subodh Gupta, CA on 30.10.2003 by the investigation wing of the department and during the course of survey, statement of Shri Subodh Gupta was recorded on oath which was retracted by Shri Subodh ... possession of the same as Bailee & (2)during the course of search all the valuables were verified as belonging to various constituents by the Investigation wing by recording statements of constituents and (3) found that assessee firm was in possession of the said valuables as courier only, same were fully

Vishan Raj Jain (HUF), Hyderabad vs. ACIT Central Circle-1 (2), Hyderabad

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

ITA 193/HYD/2022[2016-17]Status: DisposedITAT Hyderabad25 May 2023AY 2016-17

Bench: Shri Rama Kanta Panda & Shri Laliet Kumarassessment Year: 2016-17 Vishan Raj Jain (Huf) Vs. Acit, Central Circle-1(2) 6-3-650, G7 6-3-650, G7, Aaykar Bhawan Maheswari Chambers Opp:L.B.Stadium Somajiguda Basheer Bagh Telangana-500 082 Hyderabad-500 004

For Appellant: Shri K.C.Devdas, CAFor Respondent: Shri K.P.R.R.Murthy, Sr.AR
Section 10Section 10(38)Section 115BSection 142(1)Section 143(2)Section 147Section 148Section 250

nature of the regard which the AO has alleged in the assessment order. In this regard, it is to be noted that the Investigation Wing, Kolkata has identified "M/s Jackson Investments Limited' as a penny stock operated by the Khemka group with the motive and intend to provide accommodation entries ... Security Transaction Tax was to paint creditworthiness to the transaction and claim exemption u/s. 10(38). In view of the information provided by the Investigation Wing, Kolkatta, the recommendations of SIT on Black money etc, the AO required the assessee to prove her claim of exemption. After considering her reply

ACIT, Cir-4(1)(1), Mum vs. M/S Safal Resorts P Ltd (Now Merged With M/S. Azura Projects P Ltd), Thane

ITA 69/MUM/2023[2012-13]Status: DisposedITAT Mumbai25 May 2023AY 2012-13

Bench: Kuldip Singh & Shri Shri Gagan Goyalassessment Year: 2012-13 The Assistant M/S. Safal Resorts Pvt. Ltd Commissioner Of Income (Now Merged With M/S. Tax, Circle-4(1)(1), Azura Projects Pvt. Ltd, Mumbai Vs. 003, C-17, Anuroop Chs Ltd, Sector-11, Shanti Nagar, Mira Road (East), Thane, Maharashtra (Appellant) (Respondent) Pan: Aahcs4030Q

For Appellant: NoneFor Respondent: Shri Nihar Ranjan Samal, Sr DR
Section 131Section 143(1)Section 147Section 37(1)

account of expenses being operational cost and administrative expenses (including employee benefit expenses) without appreciating the fact that after receiving the information from investigation wing, it was analyzed and after recording appropriate reason the assessment was reopened u/s. 147 of the Act. The assessee has claimed huge expenses but failed

Hitesh Kumar Bindal, Ratlam vs. The DCIT Circle 1(1), Indore

ITA 206/IND/2022[A.Y- 2014-15]Status: DisposedITAT Indore25 May 2023

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year: 2014-15 Hitesh Kumar Bindal Dcit-1(1) Swastik House, 21/3 Indore बनाम/ Ratlam Kothi Vs. Indore (Appellant / Assessee) (Respondent / Revenue) Pan: Aggpb9228H Assessee By Ms. Nisha Lahoti & Shri Vijay Bansal, Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 28.02.2023 Date Of Pronouncement 25.05.2023

Section 10(38)Section 142(3)Section 143(2)Section 143(3)Section 144

that the AO has not only relied upon the impugned statement of Shri Anuj Agarwal but also upon the Report dated 27.04.2015 published by Investigation Wing of Income-tax Department on penny stocks. Ld. AR submitted that the said Report is already in public domain and it need ... sake of clarity, which will also cover the pleading made by Ld. DR representing the revenue. Ld. DR claims that the Report of Investigation Wing of Income-tax Department is in public domain and the same need not be supplied to the assessee as held by Hon’ble Kolkata High

Atul Kumar Jain, Kolkata vs. ACIT, Cir. 30, Kolkata

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

ITA 222/KOL/2022[2013-14]Status: DisposedITAT Kolkata24 May 2023AY 2013-14

Bench: Dr. Manish Borad & Sonjoy Sarma

Section 143(3)Section 250Section 35(1)(ii)

evidences, facts and circumstances submitted before him at the assessment stage and made the addition/ disallowances based on the information received from the investigation wing of the Income Tax Department. 4. For that the orders of CIT Appeal NFAC and the AO are otherwise, bad in law, unjustified and against ... claim by the assessees for long-term capital gain was a bogus claim. The Hon’ble Court has considered the material collected by the Investigating Wing of the Department on the premises of certain companies, who were manipulating the stocks or indulging any accommodation entry Page 4 of 6 I.T.A

Deputy Commissiner of Income Tax, Lic Building vs. M/S Gee Vee Developers Pvt. Ltd., Jaipur

In the result, the appeals of the revenue stands dismissed

ITA 267/JPR/2022[2016-17]Status: DisposedITAT Jaipur24 May 2023AY 2016-17

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

Section 143(3)

found during the course of search and seizure in the case of the assessee. The AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A of the Act. Therefore, even ... information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure under section 132 of the IT Act in case of the assessee. The requirement for making the addition under section 153A

Deputy Commissioner of Income Tax, Central Circle-3, Jaipur vs. M/S Vision Estates Pvt. Ltd., Jaipur

In the result, the appeals of the revenue stands dismissed

ITA 266/JPR/2022[2016-17]Status: DisposedITAT Jaipur24 May 2023AY 2016-17

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

Section 143(3)

found during the course of search and seizure in the case of the assessee. The AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A of the Act. Therefore, even ... information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure under section 132 of the IT Act in case of the assessee. The requirement for making the addition under section 153A

Deputy Commissioner of Income-Tax, Central Circle-3, Jaipur vs. M/S Chokhi Dhani Developers Pvt. Ltd., Jaipur

In the result, the appeals of the revenue stands dismissed

ITA 265/JPR/2022[2016-17]Status: DisposedITAT Jaipur24 May 2023AY 2016-17

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

Section 143(3)

found during the course of search and seizure in the case of the assessee. The AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A of the Act. Therefore, even ... information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure under section 132 of the IT Act in case of the assessee. The requirement for making the addition under section 153A

Deputy Commissioner of Income-Tax, Central Circle-3, Jaipur vs. M/S Rigid Conductors (Raj.) Pvt. Ltd., Jaipur

In the result, the appeals of the revenue stands dismissed

ITA 264/JPR/2022[2016-17]Status: DisposedITAT Jaipur24 May 2023AY 2016-17

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

Section 143(3)

found during the course of search and seizure in the case of the assessee. The AO has solely relied upon the report of the Investigation Wing Kolkata and statement of one Shri Anand Sharma recorded by the Investigation Wing during the survey under section 133A of the Act. Therefore, even ... information/report of the Investigation Wing Kolkata is considered as a relevant evidence, the same cannot be regarded as incriminating material unearthed during the course of search and seizure under section 132 of the IT Act in case of the assessee. The requirement for making the addition under section 153A

Ojaswini Retailers Pvt. Ltd., Kolkata vs. ITO, Ward - 6(3), Kolkata

In the result, the appeal of the assessee is allowed

ITA 213/KOL/2023[2013-14]Status: DisposedITAT Kolkata23 May 2023AY 2013-14

Bench: Shri Rajpal Yadav, Vice- & Dr. Manish Borad

Section 68

Ojaswini Retailers Pvt. Limited perhaps acting on Borrowed information, without having his own independent finding on the basis of information received from investigation wing:- Your information Our books and explanation dates Amount Nature 15.04.2012 25,000 28.03.2012 25,000 received in last FY 2011-12 sent in a clearing Cheque

DCIT Central Circle-2(3), Mumbai vs. M/S Asian Star Company Ltd, Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

ITA 2778/MUM/2022[2012-13]Status: DisposedITAT Mumbai23 May 2023AY 2012-13

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm M/S Asian Star Company Ltd. Dcit, Central Circle-2(3) Room No.803, 8Th Floor, 114-C, Mitta Court, Pratishtha Bhavan, Vs. M.K. Road, Churchgate, Nariman Point, Mumbai-400 020 Mumbai-400 021 (Appellant) (Respondent) Pan No. Aaaca4856B Assessee By : Shri Suchek Anchaliya, Ms. Vaishali More, Ars Revenue By : Smt. Shailja Rai, Cit Dr Date Of Hearing: 28.02.2023 Date Of Pronouncement : 23.05.2023

For Appellant: Shri Suchek AnchaliyaFor Respondent: Smt. Shailja Rai, CIT DR
Section 133ASection 143Section 148

believe the explanation and noted that that assessee has transacted with entities at level four and six as in the fund trail by the investigation wing Surat. The funds have moved out to entities based in Hong Kong and UAE in the form of remittance received by these entities ... payment to these three persons/companies will resume the colour of non- M/s Asian Star Company Ltd; A.Y.2012-13 genuineness only based on information of investigating wing Surat. He found that assessee has submitted the evidences in the form of Ledger accounts, purchase invoices, bank statements as well

Saarthak Vanijya India P. Ltd., Varanasi vs. DCIT, Central Circle-28, Delhi

In the result, the appeal of the assessee is allowed

ITA 1473/DEL/2022[2013-14]Status: DisposedITAT Delhi23 May 2023AY 2013-14

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. R. S. Singhavi, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 143(3)Section 147Section 148Section 151Section 153ASection 43(5)

sustainable under the facts and law. (iv) That the reasons for reopening having been recorded merely on the basis of information from investigation wing and in absence of any specific tangible material, the notice u/s 148 is illegal and not justified. 2(i) That the reopening being without application

DCIT Central Circle-29, New Delhi vs. Sukhbir Shokeen, New Delhi

ITA 1477/DEL/2020[2016-17]Status: DisposedITAT Delhi23 May 2023AY 2016-17

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

For Appellant: Sh. Karan Kumra, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR
Section 132Section 44ASection 46ASection 69

details of all his bank accounts but he failed to do so. When enquiry letters were sent on the bank accounts disclosed by the Investigation Wing, many other bank accounts came to the notice. 2. On the facts and in the circumstances of the case, the Ld.CIT ... sale and purchase of properties as a broker and deals in real estate and agricultural land. On perusal of the findings of the Investigation Wing, submission/details filed by the assessee and enquiries conducted u/s 133(6) of the Act, the following issues have emerged. 5. Enquiries

Randhir Singh Verma, New Delhi vs. ITO Ward 67(4), New Delhi

ITA 3137/DEL/2019[2014-15]Status: DisposedITAT Delhi23 May 2023AY 2014-15

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 3137/Del/2019, A.Y. 2014-15 Randhir Singh Verma Vs. Ito, C/O Kapil Goel Adv. Ward 67(4), F-26/124 New Delhi Sector 7 Rohini Delhi 110085 Pan : Abmpv2253R (Appellant) (Respondent)

Section 143(2)Section 143(3)Section 68

much as addition of Rs 21,56,261/- is made violating principles of natural justice without confronting any investigation wing report relevant extract, statements recorded by investigation wing , etc and without offering cross examination of revenues witness whose statements is extensively relied in impugned orders, which is sufficient to quash ... without appreciating that no opportunity is given to the assessee to be confronted with back material relied extensively in impugned orders like investigation wing report etc and no opportunity to cross examine the revenue’s witness was given despite specific written request in this regard made to Ld AO/CIT-A

Dy. Commissioner of Income Tax 2(3)(1), Mumbai vs. M/S Systematix Holdings Pvt Ltd, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 470/MUM/2023[2014-2015]Status: DisposedITAT Mumbai22 May 2023AY 2014-2015

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2014-15 Dy. Cit-2(3)(1), M/S Systematix Holding R.No. 552, Aayakar Pvt. Ltd, Bhavan, M.K. Road, Vs. 2Nd Floor, J K Somani Bldg. Mumbai-400020. British Hotel Lane, Fort, Mumbai-400 001. Pan No. Aaics 4642 M Appellant Respondent Assessee By : Mr. Gaurav Kabra Revenue By : Dr. Koshor Dule, Cit-Dr : Date Of Hearing 04/05/2023 : Date Of Pronouncement 22/05/2023 Order

For Appellant: Mr. Gaurav KabraFor Respondent: Dr. Koshor Dule, CIT-DR
Section 143(3)Section 68

unsecured loans from these persons. The case was reopened unsecured loans from these persons. The case was reopened on the information received from the Investigation Wing, on the information received from the Investigation Wing, on the information received from the Investigation Wing, Kolkata which related to other concern i.e. transaction

Shri Rajesh Ravjibhai Patel, Mumbai vs. Asstt.CIT-Circle.26(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 328/MUM/2023[2007-2008]Status: DisposedITAT Mumbai19 May 2023AY 2007-2008
Section 132(4)Section 147Section 148

31/10/2007 declaring total income of Rs.24,77,806/-Later on assessee‟s case was reopened u/s.147 on the basis of information received from Investigation Wing. Later search and seizure operation was conducted on the Hiranandani group of builders and developers on 11/03/2014. The reasons recorded by the ld. AO reads ... which were never doubted at any stage. 8. Before us, ld. Counsel submitted that the reasons recorded are based on information received from Investigation Wing and it is based on borrowed satisfaction and there is no independent application of mind by the ld. AO. Secondly, she submitted that once

Jsr Financial Services Private Limited, Faridabad vs. ACIT, Circle-1, Faridabad

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

ITA 490/DEL/2022[2012-13]Status: DisposedITAT Delhi19 May 2023AY 2012-13

Bench: Shri C.M. Garg & Shri M. Balaganeshassessment Year: 2012-13 Jsr Financial Services Private Limited, Vs Acit, House No.2221, Housing Board Colony, Circle-1, Near Tagore Public School, Faridabad. Ballabgarh, Sector-3, Faridabad, Haryana – 121 001. Pan: Aaccj6188M

For Appellant: Ms Mansi Jain, AdvocateFor Respondent: Shri Anuj Garg, Sr. DR
Section 132Section 132(4)Section 147Section 148Section 68

declaring total income at Rs.1,63,910/-. An information was received by the ld. AO vide e-mail dated 08.11.2017 from the Investigation Wing, Delhi, containing the names of certain beneficiary companies receiving cheques as share capital investment through conduit companies controlled and managed by Shri Himanshu Verma during

Ridhi Bagaria, Cuttack vs. ITO Ward-1(1), Cuttack

In the result, appeal of the assessee allowed

ITA 76/CTK/2023[2014-15]Status: DisposedITAT Cuttack18 May 2023AY 2014-15
For Appellant: Shri Keshav Dubey, CAFor Respondent: Shri Kishore Ch. Mohanty, Sr. DR
Section 10(38)

financial performance of the company. Further, we also find from record that Ld. AO also didn't confront copies of statements recorded by Investigation Wing, Kolkata of Sh, Nikhil Jain, Sh. Sanjay Vora, Sh. Rakesh Somani, Sh. Anil Kumar Khemka and Sh. Bidyoot Sarkar to the appellant during assessment proceedings ... Section 10(38), in a pre-planned manner to evade taxes. The AO extensively relied upon the search and survey operations conducted by the Investigation Wing of the Income Tax Department in Kolkata, Delhi, Mumbai and Ahmedabad on penny stocks, which sets out the modus operandi adopted in the business

Sangeeta Devi Jhunjhunwala, New Delhi vs. ITO, Ward-70(1), New Delhi

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

ITA 747/DEL/2022[2015-16]Status: DisposedITAT Delhi18 May 2023AY 2015-16

Bench: Dr. Brr Kumar & Ms. Astha Chandraasstt. Year: 2015-16

For Appellant: Shri Rajiv SaxenaFor Respondent: Shri Amit Shukla, Sr. DR
Section 10(38)Section 131Section 142(1)Section 143(1)Section 69C

that the shares of M/s. HPC Biosciences Limited cannot be termed as penny stock. The Ld. AO merely relied upon the information of Kolkata Investigation Wing and did not apply his mind. It was the contention of the assessee that the transactions of purchase and sale of the scrip ... peep into the precedents. 16.1 In Pr. CIT vs. Swati Bajaj (2022) 446 ITR 56(Cal), the AO received information from Investigation Wing that the prices of some shares of penny stock companies which included the company X in which the assessee made investment, were artificially rigged to benefit share