“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

ITO, Ward- 27(4), New Delhi vs. Yamuna Builders Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 5212/DEL/2019[2009-10]Status: DisposedITAT Delhi27 Apr 2023AY 2009-10

For Appellant: Shri Sushil Maheshwari, CAFor Respondent: Shri Gurpreet Singh, Sr. DR

Section 143Section 143(1)Section 147Section 148

hard disc had been found at the residential premises of Sh. Naresh Gupta, Deed Writer & Advocate and page 79 of the appraisal report of Investigation Wing states that M/s Yamuna Builders Pvt Ltd. (PAN: AAACY336SP) has paid Rs.1.95 crores in cash to Sh. Narpat Chand Jain during the F.Y.2008-09 (A.Y.2009-10

Shri Sham Sunder Aggarwal, Kapurthala vs. Principal Commissioner of Income Tax -1, Jalandhar

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

ITA 17/ASR/2021[2011-12]Status: DisposedITAT Amritsar27 Apr 2023AY 2011-12

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

Section 143(3)Section 147Section 148Section 151Section 263Section 263o

information received by him, in respect of the bogus purchases, which, now as per the SCN, is stated to be the report of Investigation Wing. There was no reference made to any information received from the Sales Tax Authorities either. It is well settled that reasons recorded cannot be supplemented

Asstt Commissioner of Income Tax Central Circle-3, Thane vs. M/S. Ameya Builders & Property Developers, Mumbai

ITA 2219/MUM/2022[2010-11]Status: DisposedITAT Mumbai26 Apr 2023AY 2010-11

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Smt. R.M. Madhavi

Section 250Section 801B(10)

Assessee had also failed to prove the nature of expenses and the identity of payee in response to notices issued by the investigation wing and by the Assessing Officer. Vide reply dated 30.05.2016, the Assessee submitted a cash flow statement incorporating the cash receipts and cash payments therein. Though

M/S. Ameya Builders & Property Developers, Mumbai vs. Asstt Commissioner of Income Tax Central Circle-3, Thane

ITA 1936/MUM/2022[2012-13]Status: DisposedITAT Mumbai26 Apr 2023AY 2012-13

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Smt. R.M. Madhavi

Section 250Section 801B(10)

Rajhans Infratech Pvt Ltd, Delhi vs. ACIT Circle-21(2), New Delhi

Accordingly, decided in favour of the assessee. Consequently, appeal of assessee is allowed and impugned addition is deleted

ITA 2153/DEL/2019[2015-16]Status: DisposedITAT Delhi26 Apr 2023AY 2015-16

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 2153/Del/2019, A.Y. 2015-16 M/S. Rajhans Infratech Pvt. Vs. Addl. Commissioner Of Income Ltd. Tax, M-32, 2Nd Floor, Gk-1, Circle-21(2) New Delhi New Delhi Pan : Aaacd0055F (Appellant) (Respondent)

Section 143(3)Section 68

assessment year, the assessee company was engaged in the business of real estate and has derived income from the same. The Ld. AO considered investigation wing letter with regard to information in the print media that certain allegedly bogus companies operated by Mukesh Kumar and Deepak Aggarwal were giving accommodation ... burden is discharged or not. However, the same seems to be not the case here as presuming the information received from the investigation wing to be sacramental, the Ld. Tax Authorities have failed to appreciate the relevant evidence produced by the assessee and have failed to consider it without impeaching

R.K.Machine Tools Ltd, New Delhi vs. ITO, Ward-20(3), New Delhi

In the result, the appeal of the assessee stands allowed

ITA 6616/DEL/2018[2010-11]Status: DisposedITAT Delhi26 Apr 2023AY 2010-11

Bench: Shri Shamim Yahya & Shri Anubhav Sharma[Assessment Year: 2010-11]

Section 143(3)

Section 68, read with section 147, of the Income-tax Act, 1961 - Cash credit (Accommodation entry) - Assessment year 2008- 09 - Information was received from investigation wing that assessee-company was a beneficiary of accommodation entries received from certain established entry operators - During investigation, it was found that entry operators were ... Officer to reopen assessment on aforesaid basis that income chargeable to tax to extent of accommodation entry had escaped assessment - Whether information received from investigation wing could not be said to be tangible material per se without a further inquiry being undertaken by Assessing Officer to establish link between 'tangible

Disha Foods Pvt Ltd, Hyderabad vs. DCIT, Central Circle-1(3), Hyderabad

In the result, appeal filed by the assessee is partly allowed for statistical purposes”

ITA 503/HYD/2022[2019-20]Status: DisposedITAT Hyderabad25 Apr 2023AY 2019-20

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2019-20 Disha Foods (P) Ltd Vs. Dy. C. I. T. Hyderabad Central Circle 1(3) Pan:Aabcd2266P Hyderabad (Appellant) (Respondent) Assessee By: Advocate Smt. S. Sandhya Revenue By: Shri Kprr Murthy, Cit(Dr) Date Of Hearing: 17/04/2023 Date Of Pronouncement: 25/04/2023 Order Per R.K. Panda, A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 29.07.2022 Of The Learned Cit (A)-11, Hyderabad Relating To A.Y.2019-20. 2. Although A Number Of Grounds Have Been Raised By The Assessee, However, These All Relate To The Order Of The Cit (A) In Confirming The Addition Of Rs.9,05,120/- Made By The Assessing Officer U/S 69A Of The I.T. Act.

For Appellant: Advocate Smt. S. SandhyaFor Respondent: Shri KPRR Murthy, CIT(DR)

Section 132Section 143(2)Section 69A

business premises of M/s Disha Foods Pvt Ltd, was put- forth by the assessee company. 4.10 Further, in the explanation given to the Investigation Wing, the assessee, in one way stated that 'sometimes the personal cash of the Directors/ Partners of various entities of the Group are kept ... holding that the explanation with regard to the amount of Rs.9,05,120/- is an afterthought when the appellant pleaded the same before the investigation wing which was not denied by the Assessing Officer. 5. Any other ground that may be urged at the time of hearing”. 10. The learned

Amit Rajnikant Shah, Mumbai vs. CIT (A), Income Tax Dept., NFAC, Delhi

Accordingly, Ground No. 2 and 3 raised by the Assessee are allowed while Ground No

ITA 407/MUM/2023[2012-13]Status: DisposedITAT Mumbai25 Apr 2023AY 2012-13

For Appellant: Shri Amit ShahFor Respondent: Ms. Naina K. Kumar

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

Assessment Year 2012-13, 3. the Assessee, an individual, did not file its return of income. On the basis of information received from Investigation Wing, Thane forwarded by DIT (Investigation), Pune, the Assessing Officer came to know that the Assessee had sold shares of M/s Aricent Infra Limited (formerly known ... into the appellants DP Account was also filed on record. 9. The shares of M/s Aricentinfra Ltd. were identified as Bogus entity by the Investigation wing of the Income Tax Department and therefore the transactions are not treated as genuine and not resulting in a genuine capital gains/loss. Hence

Shrikrishna D. Pawar, Mumbai vs. ITO-16(3)(4), Mumbai

In the result, the appeal of the assessee is allowed

ITA 151/MUM/2022[2014-15]Status: DisposedITAT Mumbai25 Apr 2023AY 2014-15

For Appellant: Shri Dinesh AhirFor Respondent: Shri Krishna Kumar

Section 120(5)Section 69C

back side of Dr. Sai pass-port copy etc, as well as the fact that in the appraisal report of Investigation Wing have stated that Dr. Sai secured admission by making payment of capitation fees of Rs.95 Lakhs, the AO made an addition u/s 69C of the Act of Rs.95 ... Santosh Medical College, Ghaziabad on 8th August, 2012. The Chairman and managing trustee of the group in his statement given before the investigation wing of the Department admitted that in addition to the regular fees of the medical college, they had also accepted capitation fees. The complete working sheets indicating

Deputy Commissioner of Income Tax 4(2)(1), Mumbai vs. Parsoli Corporation Ltd., Mumbai

Accordingly, Ground No. 1 raised by the Revenue is dismissed

ITA 7465/MUM/2017[2009-10]Status: DisposedITAT Mumbai25 Apr 2023AY 2009-10

For Appellant: Shri Brajendra KumarFor Respondent: None

Section 143(3)Section 147Section 148Section 2Section 68

examined by the Assessing Officer. In our view, the Assessing Officer had fresh tangible material in the form of information/documents received from the investigation wing relating to deposit of cash of INR 42,00,000/- in the bank account of the Assessee as well as the details furnished

Exotic Jewels, Surat vs. Income Tax Officer, Ward-2(3)(7), Surat

In the result, this appeal of assessee is partly allowed

ITA 29/SRT/2023[2010-11]Status: DisposedITAT Surat25 Apr 2023AY 2010-11

Bench: Shri Pawan Singh(Virtual Hearing) Exotic Jewels, I.T.O., 304, Kohinoor Complex, Chowky Sheri, Ward 2(3)(7), Vs. Sayedpura, Surat-395003. Surat. Pan No. Aabfe 2823 Q Appellant/ Assessee Respondent/ Revenue

Section 132Section 147Section 148Section 254(1)

assessee submits that the case of assessee was reopened under Section 147 of the Act on the basis of information of Investigation Wing, Mumbai that the assessee is one of the beneficiary of accommodation entry received from Bhanwarlal Jain. On Bhanwarlal Jain group, a search was conducted under Section ... Assessing Officer noted that the assessee has shown purchases from M/s Euro Diam of Rs. 39.98 lacs. M/s Euro Diam was identified by the Investigation Wing, Mumbai as one of the entity managed by Bhanwarlal Jain and group. The Assessing Officer issued show cause notice as to why the purchases

ITO 13(2)(3), Mumbai vs. Sns Real Estate LLP, Mumbai

ITA 543/MUM/2020[2012-13]Status: DisposedITAT Mumbai24 Apr 2023AY 2012-13

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2012-13 Ito-13(2)(3), M/S Sns Real Estate Llp, Room No. 147, 1St Floor, 102, Jn. Of 11St Road, Central Aayakar Bhavan, M.K. Road, Vs. Avenue Road, Ghanteshwar Mumbai-400020. Mandir, Khar (W), Mumbai-400052. Pan No. Aamcs 6550 L Appellant Respondent Assessee By : None Revenue By : Mr. Sanjeev Kashyap, Cit-Dr : Date Of Hearing 09/03/2023 : Date Of Pronouncement 24/04/2023 Order

For Appellant: NoneFor Respondent: Mr. Sanjeev Kashyap, CIT-DR

Section 143(3)Section 68

Dilip Merita& his associates as communicated by the Dilip Merita& his associates as communicated by the Dilip Merita& his associates as communicated by the Investigation Wing Mumbai. Thus, it is very evident that the Investigation Wing Mumbai. Thus, it is very evident that the Investigation Wing Mumbai. Thus ... appellant other than merely relying on discreet information received from merely relying on discreet information received from merely relying on discreet information received from investigation wing. Mumbai without himsel investigation wing. Mumbai without himself making any f making any other efforts to bring on record any valid or corroborative

Bhushan Kumar Uppal, New Delhi vs. ACIT, Central Circle-29, New Delhi

In the result, appeal of the assessee is allowed

ITA 1986/DEL/2018[2015-16]Status: DisposedITAT Delhi24 Apr 2023AY 2015-16

Bench: Shri Kul Bharat & Shri M. Balaganeshshri Manish Uppal (Legal Heir Of Vs. Acit, Bhushan Kumar Uppal), Central Circle-29, N-55, Panchsheel Park, New New Delhi Delhi-110017 (Appellant) (Respondent) Pan: Aaapu3998D

For Appellant: Sh. Salil Agarwal, Sr. AdvFor Respondent: Sh. Mahir Agarwal, Adv

Section 132Section 132(4)Section 132ASection 132BSection 143(3)Section 154Section 234B

name of assessee and Shri Achyut Kumar Gupta. At the time of search in the said car on 27.05.2014, the Income Tax Investigation Wing found that Shri Achyut Kumar Gupta, who was in the car was carrying cash of Rs. 1.76 crores, who claimed that the said cash belongs

Income Tax Officer-10(2)(1), Mumbai vs. Janitor Infrastructure Private Limited, Mumbai

In the result additions as made by the Assessing Officer on this score are directed to be deleted

ITA 3040/MUM/2022[2012-13]Status: DisposedITAT Mumbai21 Apr 2023AY 2012-13

Section 137Section 143(1)Section 143(3)Section 147Section 148

19/03/2015 accepting the returned income. During the year under consideration assessee engaged in business of Real estate 2 An information was received from the Investigation Wing, Asstt. DIT(Inv), Unit 2(1), Delhi vide letter bearing No.F.No. ADIV(Inv)/Unit2(1)/2018-19/594 dated 25-03-2019, During the course ... assessee company. 4. From the analyses of the details in the assessment record of AY-2012-13, and the information received from investigation wing and enquiry made during the course of assessment proceeding gives reason to believe that assessee is a beneficiary of accommodation entry from Delight Resorts

M/S. J S Realty Pvt. Ltd., Mumbai vs. ITO, Ward-12(3)(1), Mumbai

Accordingly, Ground No. 4 to 9 pertaining to the merits of the matter are dismissed as being infructuous

ITA 2097/MUM/2022[2012-13]Status: DisposedITAT Mumbai21 Apr 2023AY 2012-13

For Appellant: Shri S L JainFor Respondent: Ms. Vranda U Matkarni

Section 133(6)Section 143(3)Section 147Section 148Section 151Section 68

appeal: 2. “1. Ld. CIT(A) erred in upholding validity of notice u/s 148 as reasons recoded were based on information received from Investigation Wing as appellant being charged to be beneficiary of accommodation entries without considering validity of notice on various grounds taken by the appellant ... available with LD AO and LD AO recoded belief merely based 2 ITA. No. 2097/Mum/2022 Assessment Year: 2012-13 on intimation received from Investigation Wing with any verification, himself, hence, belief is a borrowed belief. 2. Ld. CIT (A) failed to appreciate that objections taken as to validity of notice

Maharashtra Forge Fitting, Mumbai vs. ITO- 19(2)(3), Mumbai

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

ITA 500/MUM/2023[2009-10]Status: DisposedITAT Mumbai20 Apr 2023AY 2009-10

Bench: Shri B.R. Baskaran (Am) & Shri Pavan Kumar Gadale (Jm)

Section 144Section 148

noticed that the Assessing Officer has reopened the assessment under section 148 of the Act on the basis of the information received from the investigation wing that the assessee has availed accommodation entries in the form of purchases from some of the dealers, who were identified by sales tax department

Mr. Abhijeet Soni, Mumbai vs. ITO-16(2)(1), Mumbai

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

ITA 2920/MUM/2022[2007-08]Status: DisposedITAT Mumbai20 Apr 2023AY 2007-08

Bench: Shri S. Rifaur Rahman, Hon'Ble & Ms Kavitha Rajagopal, Hon'Bleabhijeet Soni V. Income Tax Officer – 16(2)(1) Room No. 441 C/O- M/S. Jayesh Sangharajka & Co.Llp 405, Hind Rajasthan Centre Aayakar Bhavan Ds Phalke Road Mumbai - 400020 Dadar (E), Mumbai - 400014 Pan: Aadps8454R (Appellant) (Respondent)

Section 143(1)Section 143(2)Section 144ASection 148

showcause notice given dated 15th January, 2015 it is claimed by your good self that you had received information from Directorate of Investigation Wing - I under letter dated 27 March, 2014. However no such material was provided to assessee when requested. 7. Assessee had also filed petition under 144A which ... provide the copy of reasons recorded for reopening the assessment. c) Ld. AO has recorded the reasons that he has received information from Investigation Wing, Income Tax Department, that assesse had paid on- money' in cash to M/s. Hiranandani Group while purchasing the flat to the tune

DCIT, CC-7(3), Mumbai vs. Satish Jagannath Aggarwal, Mumbai

In the result, the appeal of the revenue stand dismissed

ITA 2818/MUM/2022[2014-15]Status: DisposedITAT Mumbai20 Apr 2023AY 2014-15

For Appellant: Rushabh MehtaFor Respondent: Krishna Kumar

Section 132Section 143(3)Section 153Section 153ASection 153CSection 158B

search. On perusal of the assessment order, it is found that the learned AO has noted that there was an information received from the Investigation Wing that the Investigation Directorate of Kolkata had carried out a country-wide investigation to unearth the organized racket of generating bogus entries of long ... claimed to be exempt from taxation. The AO has discussed the modus operandi of the same as discussed in the investigation report of the Investigation Wing. On the basis of the same, it was held that the assessee has generated bogus long-term capital gain by way of sale

Mita Holdings Pvt. Ltd., Mumbai vs. Addll. CIT - CC - 3, Mumbai

In the result, appeal of the assessee is allowed

ITA 1817/MUM/2019[2014-15]Status: DisposedITAT Mumbai20 Apr 2023AY 2014-15

Section 269TSection 271E

whether the transactions of conversion of the said alleged loans into convertible debentures are bonafide transactions, in respect of the said 12 lenders, the Investigation Wing was asked to carry out necessary verification and report if any adverse inference has been drawn against the said 12 lender companies prior ... said amalgamation w.e.f. 8 M/s. Mita Holdings Pvt. Ltd. 01.04.2014. In response, the Investigation Wing has submitted the necessary factual report on the basis of enquiries carried out through ITD/TBA system. The position which emerges on the basis of the enquiries conducted in respect of the lender companies

ACIT, New Delhi vs. M/S Seh Realtors Pvt. Ltd., New Delhi

In the result, the appeals of the assessee are allowed, the COs of the assessee are allowed for statistical purpose and the appeals of the Revenue are dismissed

ITA 792/DEL/2017[2011-12]Status: DisposedITAT Delhi20 Apr 2023AY 2011-12

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. M. P. Rastogi, Adv. &For Respondent: Sh. H. K. Choudhary, CIT DR

addition u/s 69A on account of cash received on booking of plots by M/s Vatika Ltd. 2. A search & survey operation was conducted by Investigation Wing in the case of Sh. K.S. Dhingra, Sh. G.S. Dhingra & others on 16.09.2011. On the basis of the seized documents, the revenue alleged that