“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

Hemant Kumar Agarwal, Cuttack vs. Addl.CIT NFAC, Delhi

In the result, both appeals of the assessee are allowed

ITA 165/CTK/2022[2013-14]Status: HeardITAT Cuttack23 Feb 2023AY 2013-14

For Appellant: Shri Mohit Sheth, AdvocateFor Respondent: Shri S.C.Mohanty, Sr. DR

Section 10(38)

submission that the AO has categorically provided the details of modus operandi adopted by the assessee in such cases. It was submitted that the investigation wing of was Mr. Dipak Patwari. Ld. Sr. DR drew our attention to page 3 of the assessment order para 4 which was the modus ... evidence produced by the revenue to show that the broker engaged by the assessee was one of the operator identified by the investigation wing at Kolkata as an entry operator. The assessee’s name has also not been mentioned by any of the operators, whom the revenue has investigated

ACIT, Central Circle-1, Patna vs. Sonamoti Agrotech Pvt Ltd, Patna

ITA 110/PAT/2019[2012-13]Status: DisposedITAT Patna23 Feb 2023AY 2012-13

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumar

Section 132Section 143(2)Section 153ASection 68

found or seized during the course of search based on which addition was made. However, the AO do referred to information received from the investigation wing of Income Tax Department, Kolkata wherein certain companies were identified as paper companies which involved in providing accommodation entries. Accordingly, the AO based ... location of the share applicants. As I have stated earlier, the AO can assume valid jurisdiction u/s,153A based on the report from the Investigation wing of the department, but at the same time has to be backed by independent enquiry by the AO with positive evidence to corroborate

Shiv Kumar Sharma, New Delhi vs. ACIT, Circle-57(1), New Delhi

In the result, appeal of Assessee is allowed

ITA 4329/DEL/2019[2012-13]Status: DisposedITAT Delhi23 Feb 2023AY 2012-13

Bench: Shri Anil Chaturvedi & Shri C.M. Garg

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Ms Kirti Sankratyayan, Sr. DR

Section 131Section 132Section 132(4)Section 147Section 148

appellate order, in which, in Ground No.6, assessee has challenged the addition of Rs.19,75,000/-. He has submitted that A.O. or the Investigation Wing have not supplied copy of the statement of Dr P Mahalingam to him for rebutting his statement and no cross- examination to his statement have ... assessing officer did not record in the assessment order if statement of Dr. P Mahalingam recorded at the back of the assessee by the Investigation Wing, was allowed for cross examination on behalf of the assessee at any stage, therefore, statement of third party, cannot be used against the assessee

Sumangal Techpark (P) Ltd, New Delhi vs. ITO Ward - 24(3), New Delhi

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

ITA 3840/DEL/2019[2010-11]Status: DisposedITAT Delhi23 Feb 2023AY 2010-11

Bench: Shri Anil Chaturvedi & Shri C.M. Gargassessment Year: 2010-11 Sumangal Techpark (P) Ltd., Vs. Ito, 117, Hans Bhawan, Ward-24(3), 1 Bsz Marg, New Delhi. New Delhi. Pan: Aalcs4760R (Appellant) (Respondent) Assessee By : Shri S.K. Gupta, Ca Revenue By : Ms Kirti Sankratyayan, Sr. Dr Date Of Hearing : 19.12.2022 Date Of Pronouncement : 23.02.2023 Order Per C.M. Garg, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 26.02.2019 Of The Cit(A)-8, New Delhi, Relating To Assessment Year 2010-11. 2. First Of All, We Have Heard The Arguments Of Both The Representatives On Legal Ground No.1 Of The Assessee Which Reads As Under:- “3. The Initiation Of The Proceedings U/S 148 & The Consequent Order Us 147 Are Bad In Law As A) The Initiation Of Proceedings U/S 148 Are Contrary To Provisions Of Law B) The Mandatory Procedure Laid Down In The Act Has Not Been Followed. C) The Notice Issued U/S 148 Is Time Barred As Issued After 4 Years From The End Of The Relevant Assessment Year Where The Case Has Already Been Assessed U/S 143(3). D) The Approval Of Addl. Cit & Pcit Is Bad In Law & Mechanical Without Application Of Mind & Has Been Taken Without Bringing To Their Notice Material Facts Of The Case. E) The Information Has Been Collected Behind The Back Of The Assessee & The Assessee Was Never Confronted With The Same Nor An Opportunity Provided For Cross-Examination Of Jain Brothers, Alleged Intermediary & The Relevant Seized Material Relied Upon Has Not Been Provided To The Assessee.”

For Appellant: Shri S.K. Gupta, CAFor Respondent: Ms Kirti Sankratyayan, Sr. DR

Section 143(3)Section 147Section 148Section 151Section 292B

Rs.193.00 Lakh as escaped assessment with the meaning of Section 147 of the IT Act 1961 I have perused the information received from the Investigation Wing,Kolkata The Investigation Wing of the Department has sent 11 comprehensive detail comprising inter alia the beneficiary's name, value of entry taken ... 147/148 of income-tax Act, 1961. 23. Since more than 4 years of the relevant years have passed and the information received from the investigation wing is that transactions are in the nature of accommodation entries, are non disclosure: of material facts pertaining to such transactions which has not been

Sri Ramachandra Murthy Badarla, Secunderabad vs. DCIT., Central Circle-3(3), Hyderabad

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

ITA 650/HYD/2022[2019-20]Status: DisposedITAT Hyderabad22 Feb 2023AY 2019-20

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2019-20 Shri Ramachandra Murthy Vs. Dy. C. I.T. Badarla, Secunderabad Central Circle 3(3) Pan:Bpfpb2851B Hyderabad (Appellant) (Respondent) Assessee By: Shri Pawan Kumar Chakrapani Revenue By: Shri Kumar Aditya, Dr Date Of Hearing: 22/02/2023 Date Of Pronouncement: 22/02/2023 Order Per R.K. Panda, A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 02.09.2022 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 Ex-Parte Order Of The Cit (A) In Confirming The Order Of The Assessing Officer In Taxing The Amount Of Rs.74,00,120/- @ 60% As Per The Provisions Of Section 115Bbe Of The I.T. Act As Against 30% Offered By The Assessee.

For Appellant: Shri Pawan Kumar ChakrapaniFor Respondent: Shri Kumar Aditya, DR

Section 115BSection 131Section 132ASection 143(3)

sources for the cash found, the Police have seized the cash and communicated the same to the Income Tax Department. Enquiries conducted by the Investigation Wing revealed that the said cash belonged to the assessee and the same was requisitioned u/s 132A of the I.T. Act. 4. The assessee

ITO 14(2)(3), Mumbai vs. M/S Minimed Laboratories Pvt. Ltd., Mumbai

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

ITA 3585/MUM/2019[A.Y- 2012-13]Status: DisposedITAT Mumbai22 Feb 2023

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

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

with the AO, he did not conducted any verification or investigation to dig out the truth but acted on the information supplied by the investigation wing The Ld CIT(A) considered the contentions of the assessee in detail and came to the conclusion that assessee has duly proved the genuineness

Income Tax Officer, Ward-2(3)(8), Surat vs. Sanjaykumar Devkishan Panwar, Surat

In the result the ground No

ITA 588/SRT/2019[2008-09]Status: DisposedITAT Surat22 Feb 2023AY 2008-09

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.569/Srt/2019 Assessment Year: (2008-09) (Physical Court Hearing) Sanjaykumar Devkishan Panwar, Vs. The Ito, Ward-2(3)(8), 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) आयकर अपील सं./Ita No.588/Srt/2019 Assessment Year: (2008-09) The Ito, Ward-2(3)(8), Vs. Sanjaykumar Devkishan Panwar, 207, 2Nd Floor, 6/2060/61 Vedant Surat. Building Bojabhai Ni Sheri, Mahidharpura, Surat – 395003 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aovpp8989A (Revenue)/(Appellant) (Assessee)/(Respondent) Assessee By Shri Rohit Vijayvargia, Ca Shri Ritesh Mishra, Cit(Dr) Respondent By Date Of Hearing 03/02/2023 Date Of Pronouncement 20/02/2023

Section 143(3)Section 147Section 148

submission of the AR, Remand Report and considered verbal arguments. It is seen from the records that the AO had received report from the Investigation Wing, Mumbai, which indicated that the appellant was beneficiary of accommodation entry operators. The said accommodation entry operator 'has admitted before the Investigation Wing that ... also. The Id assessing officer has relied on statement of Shri B.Jain which is allegedly retracted by him at later stage and report of Investigation Wing, as against this, the appellant has filed copies of purchase bills, copy of bank statements showing payments, day - to day stock register showing incoming

Sanjaykumar Devkishan Panwar, Surat vs. Income Tax Officer, Ward-2(3)(8), Surat

In the result the ground No

ITA 569/SRT/2019[2008-09]Status: DisposedITAT Surat22 Feb 2023AY 2008-09

Section 143(3)Section 147Section 148

Late Shri Bhimsen Darbarilal Arora, Surat vs. The Asstt. Commissioner of Income Tax, Circle-5, Surat

In the result, ground no.4 raised by assessee is allowed for statistical purposes

ITA 1706/AHD/2016[2010-11]Status: DisposedITAT Surat22 Feb 2023AY 2010-11

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.1706/Ahd/2016 "नधा"रणवष"/Assessment Year: (2010-11) (Physical Court Hearing) Bhimsen Darbarilal Arora Through, Vs. The Acit, Circle-5, L/H. Rajat Bhimsen Arora, Surat. Smt. Mamta Bhimsen Arora, A-201, Madhulika Apartment, Bhatar Road, Surat. (Appellant) (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Acaps9230L

Section 133ASection 143(3)Section 145(3)Section 68

various documentary evidences furnished by assessee. The ld. CIT-DR for the Revenue supported the order of AO. The ld. CIT-DR submits that Investigation Wing, Mumbai made a search on Bhanwarlal Jain Group. During the search and after search, the Investigation Wing made a thorough investigation and concluded that ... made any comment on the documentary evidence furnished by assessee. The AO solely relied upon the statement of third party and the report of Investigation Wing. The report of wing and the statement of Bhanwarlal Jain were not provided to the assessee. The AO has not disputed the sales

M/S. Pantime Finance Co. P. Ltd., Mumbai vs. ITO Ward-13(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 636/MUM/2021[2012-13]Status: DisposedITAT Mumbai21 Feb 2023AY 2012-13

Section 143(3)Section 147Section 148Section 263

Parshuram Jagtap, Mumbai vs. Assistant Commissioner of Income Tax-23(1), Mumbai

In the result, appeal of the assessee is dismissed

ITA 4550/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Feb 2023AY 2010-11

Bench: Us From 16/10/2018 Onwards Despite Service Of Notice On Various Dates. Since, This Is A Very Old Appeal & No Purpose Would Be Served By Keeping This Appeal Pending Before Us. Hence, We Proceed To Dispose Of This Appeal On Hearing The Ld. Dr & Based On The Materials Available On Record.

Section 131Section 144Section 148Section 249Section 269SSection 271DSection 44A

account filed alongwith return of income. The ld. AO during the course of assessment proceedings observed that pursuant to the information received from the Investigation Wing that assessee in his statement recorded u/s.131 of the Act on 15/02/2010 before the ADIT Investigation Unit V(1) Mumbai had stated that source ... ICICI Bank, Thane was loan received from various parties. This fact was further confirmed by the assessee vide letter dated 07/05/2010 addressed to ADIT Investigation Wing V(1) Mumbai. Later the assessment was reopened by issuance of notice u/s 148 of the Act. Since no satisfactory explanation was given with

Surender Kumar, New Delhi vs. ACIT Circle-37(1), New Delhi

In the result, appeal of the Assessee stands allowed partly

ITA 1575/DEL/2020[2011-12]Status: DisposedITAT Delhi21 Feb 2023AY 2011-12

Bench: Shri Anil Chaturvedi & Shri Narender Kumar Choudhry[Assessment Year: 2011-12

Section 142(1)Section 147Section 148Section 250

interest income of Rs. 16,990/- in its P & L account section. 2.1 However, on the basis of an information received from the Investigation Wing, New Delhi to the effect that Assessee has maintained a current account in Punjab National Bank, Sector-7, Rohini, Delhi, being a/c no. 3028002100159649, opened

B.R Goel & Sons (HUF), New Delhi vs. ITO Ward - 47(4), New Delhi

In the result appeal of assessee is allowed

ITA 9084/DEL/2019[2011-12]Status: DisposedITAT Delhi21 Feb 2023AY 2011-12

Bench: Shri Chandra Mohan Garg & Shri B.R.R. Kumarassessment Year: 2011-12 B.R. Goel & Sons (Huf) Ito, Ward 47(4), Drum 1228, Kaccha Bagh, Shape Building, I.P Chandani Chowk, Delhi Vs. Extension, New Delhi 110006 110002 Pin Aadhb5670C (Appellant) (Respondent) For Assessee: Shri C.S Anand, Advocate For Revenue : Shri Kanv Bali, Sr.Dr

For Appellant: Shri C.S Anand, AdvocateFor Respondent: Shri Kanv Bali, Sr.DR

Section 147Section 148Section 68

Assessee for reopening the assessment: 11. Reasons for the belief Information has been received from the that Information has income has escaped Investigation Wing of been received from the Income-tax assessment. Department income has escaped that M/s Pine View Construction & Traders Investigation Wing of Pvt. Ltd. is a beneficiary ... accommodation the Income-tax entries received from certain established assessment entry operators identified by the Investigation Wing during the period relevant to A. Y 2004-05. A comprehensive investigation was carried out by the Investigation Wing for identification of entry operators engaged in the business of money laundering

Viswanathan Securities P.Ltd, New Delhi vs. ACIT, Circle-26(2), New Delhi

In the result, the appeal of the assessee is allowed

ITA 135/DEL/2019[2010-11]Status: DisposedITAT Delhi21 Feb 2023AY 2010-11

Bench: Shri Challa Nagendra Prasad & Shri Pradip Kumar Kedia

For Appellant: Shri R.K. Mehra, CAFor Respondent: Shri N.K. Bansal, Sr.DR

Section 143(3)Section 147Section 148Section 148(1)Section 292B

undertaken transactions through M/s. SS Corporate Securities Limited. b) The transactions which involved CCM, as per information received under the report of the Investigation Wing are as under: Address of MC of Name of the Name When Net reduction in Beneficiary OC Broker Beneficiary When (Ascertained Income due to Client ... assessee has shifted in ascertained loss of (-)1578004.95 through a transaction involving CCM. 5. Thus, a careful scrutiny of information received from the investigation wing and analysis of report, data of transactions and verification of ITR/Assessment Record lead to an irresistible conclusion that Client Code Modification had been carried

Eeva Exports, Mum vs. CIT (A), NFAC, Delhi

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

ITA 3091/MUM/2022[2011-12]Status: DisposedITAT Mumbai20 Feb 2023AY 2011-12

Bench: Shri M. Balaganesh & Shri Sandeep Singh Karhail

For Appellant: Shri Rajnish AggarwalFor Respondent: Ms. Indira Adakil

Section 147Section 250Section 253(3)

action of the Ld. Assessing Officer who formed his opinion for escapement of income merely on the basis of information received from the Investigation wing of the 1. Tax Department Mumbai without making any enquiry at his end, thereby the assessment so framed u/s 147 r.w.s ... thereby confirming the action of Ld. Assessing Officer in considering it to be a bogus purchase on the basis of information received from Investigation Wing of the Income Tax Department. Mumbai ignoring the fact that the appellant is maintaining proper books of account, purchase and sales are supported by vouchers

Ajay Kumar Agarwal, Adilabad vs. DCIT, Central Circle-1(3), Hyderabad

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

ITA 600/HYD/2022[2019-20]Status: DisposedITAT Hyderabad17 Feb 2023AY 2019-20

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2019-2020 Ajay Kumar Agarwal, Vs. Deputy Commissioner Of Adilabad. Income Tax, Pan : Abfpa5795A. Central Circle – 1(3), Hyderabad. (Appellant) (Respondent) Assessee By: Shri Siddharth Mantri, Ca Revenue By: Shri K.P.R.R. Murthy. Date Of Hearing: 15.02.2023 Date Of Pronouncement: 17.02.2023

For Appellant: Shri Siddharth Mantri, CAFor Respondent: Shri K.P.R.R. Murthy

Section 132ASection 153ASection 69A

possession of cash of Rs. 6,20,000/- during Police Check by Dhone Rural PS. Subsequently, the said cash was requisitioned by the Investigation Wing u/s. 132A of the IT Act. Further, notice u/s. 153A was issued to the assessee on 3 10.03.2021 and in response to the same

DCIT Cent. Cir-2(3), Mumbai vs. Soma Enterprises Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 1824/MUM/2021[2015-16]Status: DisposedITAT Mumbai17 Feb 2023AY 2015-16

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 132Section 143(3)

basis that purchases are duly supported by bills and all the payments were made by account payee cheques by overlooking findings of the investigation wing in the case of Shri Kulwant singh Yadav, who was running Shroff business and he in his statement on oath stated that he issue acknowledgement

Atul Kumar Gupta, New Delhi vs. ACIT Central Circle-28, New Delhi

In the result, Revenue’s appeals for AYs 2011-12 in the cases of

ITA 206/DEL/2021[2015-16]Status: DisposedITAT Delhi17 Feb 2023AY 2015-16

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri T. Kipgen, CIT DR

Section 132Section 69A

documents were found in the search proceedings without appreciating the fact that the scan copy of the incriminating information was clearly apprised by the investigation wing in the appraisal report. 3. Whether on facts and in the circumstances of the case, Ld. CIT(A) was legally justified in allowing relief

Atul Kumar Gupta, New Delhi vs. ACIT Central Circle-28, New Delhi

In the result, Revenue’s appeals for AYs 2011-12 in the cases of

ITA 205/DEL/2021[2014-15]Status: DisposedITAT Delhi17 Feb 2023AY 2014-15

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri T. Kipgen, CIT DR

Section 132Section 69A

Atul Kumar, New Delhi vs. ACIT Central Circle-28, New Delhi

In the result, Revenue’s appeals for AYs 2011-12 in the cases of

ITA 1395/DEL/2021[2016-17]Status: DisposedITAT Delhi17 Feb 2023AY 2016-17

For Appellant: Shri Ajay Wadhwa, AdvocateFor Respondent: Shri T. Kipgen, CIT DR

Section 132Section 69A