“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

Nicetel Electronics Private Ltd., New Delhi vs. ACIT, Circle-18(1), New Delhi

In the result, this appeal filed by the assessee stands dismissed

ITA 4768/DEL/2019[2010-11]Status: DisposedITAT Delhi02 Feb 2023AY 2010-11

For Appellant: NoneFor Respondent: Shri Jitender Chand, Sr. DR

Section 68Section 69C

record. 3. Brief facts of the case are that in this case, assessment was reopened on information received from the Directorate of Income-tax, Investigation Wing regarding search operation carried out in the case of Shri Surendra Kumar Jain group of cases. In the case of assessee, AO noted that ... assessee has received share capital and share premium fund of Rs.30,00,000/-. As per information provided by the Investigation Wing, the assessee has obtained accommodation entries of Rs.30,00,000/- from S.K. Jain group of companies. Elaborating the modus operandi in this regard, the AO made addition

ITO Ward 31(4), New Delhi vs. Damini Wadhwa, New Delhi

In the result, this appeal filed by the Revenue stands allowed for

ITA 3146/DEL/2019[2006-07]Status: DisposedITAT Delhi02 Feb 2023AY 2006-07

Bench: Shri Shamim Yahya & Ms. Astha Chandra[Assessment Year: 2006-07]

facts of the case are that the Assessing Officer noted that assessment was reopened in this case on the basis of information received from Investigation Wing of the Directorate of Income Tax that the assessee had sold her share in land situated Maidan Garhi for Rs.1,54,43,000/- (Rs.36 ... juxtaposition and analyzed, it seems that the whole addition was made by the Assessing Officer on the basis of information received from the investigation wing and was purely based upon presumption, because, no documentary evidence was brought on record substantiating that any cash was transacted in the purchase. The information

Ruhr Ispat Pvt. Ltd., Burdwan vs. ACIT, Circle-3(3), Kolkata

In the result, appeal of the assessee is allowed

ITA 564/KOL/2022[2017-2018]Status: DisposedITAT Kolkata01 Feb 2023AY 2017-2018

Bench: Shri Rajpal Yadav, Hon’Ble & Shri Girish Agrawal, Hon’Bleassessment Years: 2017-18 Ruhr Ispat Pvt. Ltd. Assistant Commissioner Of Income Bamunara Industrial Area Tax, Circle-3(1), Kolkata Mouza – Gopalpur Vs. Ps: Kanksa, Burdwan West Bengal – 713216 [Pan: Aadcr 3657 E] (Appellant) (Respondent) Assessee By : Shri Sushil Kumar Pransukha, Fca Revenue By : Shri P.P. Barman, Addl. Cit सुनवाई की तारीख/Date Of Hearing : 28/12/2022 घोषणा की तारीख/Date Of Pronouncement : 01/02/2023 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Directed Against The Order Passed By The National Faceless Appeal Centre, Delhi, (Hereinafter The “Ld. Cit(A)”) Dated 21/09/2022 For Assessment Year 2017-18 Against The Assessment Order Passed U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’) Passed By Acit, Circle-3(1), Kolkata, Dated 30/12/2019. 2. The Assessee Has Raised The Following Grounds Of Appeal:-

For Appellant: Shri Sushil Kumar Pransukha, FCAFor Respondent: Shri P.P. Barman, Addl. CIT

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

Ruhr Ispat Pvt. Ltd. of collection from the debtors were identified and submitted before the ld. Assessing Officer as well as before the Investigation wing of the Department, prior to the assessment proceedings. 10. Considering the factual matrix, corroborated with documentary evidence, we are inclined to accept the contentions

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle 1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 81/CTK/2022[2012-13]Status: DisposedITAT Cuttack01 Feb 2023AY 2012-13

Bench: Shri George Mathan & Shri Arun Khodpiaआयकर अऩीऱ सं/Ita Nos.76 To 81/Ctk/2022 (ननधाारण वषा / Assessment Years :2007-2008 To 2012-2013) Bibhudutta Panda, Vs Acit, Corporate Circle-1(2), Plot No.73 & 74, Jayadev Vihar, Bhubaneswar Bhubaneswar-751013 Pan No. :Adapp 6398 R (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

evidence found however the assessment made by the A.O. should not be arbitrary. In the present case, the post search inquiries conducted by the Investigation Wing revealed that the unsecured loan received from Jai Matadi Sales Pvt. Ltd. was not genuine and it was a shell company. Hence such post

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 80/CTK/2022[2011-12]Status: DisposedITAT Cuttack01 Feb 2023AY 2011-12

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 79/CTK/2022[2010-11]Status: DisposedITAT Cuttack01 Feb 2023AY 2010-11

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 78/CTK/2022[2009-10]Status: DisposedITAT Cuttack01 Feb 2023AY 2009-10

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 77/CTK/2022[2008-09]Status: DisposedITAT Cuttack01 Feb 2023AY 2008-09

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

Bibhudutta Panda, Bhubaneswar vs. Asst.CIT, Corporate Circle-1(2), Bhubaneswar

In the result, all appeals of the assessee stand allowed

ITA 76/CTK/2022[2007-08]Status: DisposedITAT Cuttack01 Feb 2023AY 2007-08

For Appellant: Shri S.K.Agrawalla/S.K.Hota, ArsFor Respondent: Shri M.K.Gautam, CIT-DR

Section 142(1)Section 153ASection 153D

Blue Sky Portfolios Private Limited, Delhi vs. ITO, Ward-5(1), New Delhi

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

ITA 75/DEL/2020[2011-12]Status: DisposedITAT Delhi01 Feb 2023AY 2011-12

Bench: Shri Shamim Yahya & Shri Yogesh Kumar U.S.I.T.A. No. 75/Del/2020 (A.Y 2011-12)

For Appellant: Sh. Sahil gupta, CAFor Respondent: Sh. Kanv Bali Sr. DR

Section 147Section 250(6)Section 68

against facts of the case and equity. 6. The reassessment proceedings initiated by the Ld. AO is based on the information received from investigation wing and there was no material before him to substantiate the allegation contained in the information and therefore initiation of proceedings

Jvr Retails Private Limited, Hyderabad vs. Deputy Commissioner of Income Tax, Circle -2(1), Hyderabad

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

ITA 175/HYD/2021[2012-13]Status: DisposedITAT Hyderabad31 Jan 2023AY 2012-13

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Charyassessment Year: 2012-13 Jvr Retails Private Limited Vs Dcit, Circle-2(1) C/O. Murali & Co. . Hyderabad Chartered Accountants 6-3-655/2/3, Somajiguda Hyderabad-500 082 Pan : Aaccv9428J (Appellant) (Respondent) Assessee By: Shri M.V.Joshi Appeared For P.Murali Mohan Rao, Ca Revenue By: Shri Jeevan Lal Lavidiya, Cit-Dr Date Of Hearing: 14.01.2023 Date Of Pronouncement: 31.01.2023 O R D E R Per Shri Rama Kanta Panda (A.M.): This Appeal Filed By The Assessee Is Directed Against The Order Dated 16.03.2021 Passed U/S. 263 By The Learned Principal Commissioner Of Income Tax -2, Hyderabad Relating To A Y 2012-13. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Domestic Company Engaged In The Business Of Retails & Manufacturing Of Jewelry. It Filed Its Return Of Income Declaring Total Income Of Rs. 49,97,390/- On 08.09.2012 Which Was Processed U/S 143(1) On 21.02.2013. Subsequently, The Ao Reopened The Assessment By Recording Reasons As Per Provisions Of Section 147. The Reasons To Believe Which Was Put Up Before The Ld.Pcit-2 For Approval & Which Has Been Reproduced By The Ao In The Body Of The Assessment Order Read As Under:-

For Appellant: Shri M.V.Joshi appeared for P.Murali Mohan Rao, CAFor Respondent: Shri Jeevan Lal

Section 143(1)Section 143(3)Section 147Section 148Section 263Section 68

shares to the extent of 4,82,250 @ Rs.100/- per share on private placement by receiving an amount of Rs.4,82,25,000/-. The Investigation Wing, Kolkata have made extensive enquiries in respect of financial transactions made through M/s Skylark Commodeal Pvt. Ltd, which revealed amounts from various companies which ... invoking jurisdiction u/s 263 of the I.T.Act. He submitted that the AO in the instant case, on the basis of the report of the Investigation Wing, has considered that the income to the tune of Rs.1,65,00,000/- has escaped assessment for which he, after recording reasons, had reopened

Jainsons Estates Private Ltd, Mumbai vs. Income Tax Officer, Range 3(2)(1), Mumbai

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

ITA 2261/MUM/2022[1996-97]Status: DisposedITAT Mumbai31 Jan 2023AY 1996-97

Bench: Shri Aby T. Varkey, Jm & Shri M. Balaganesh, Am आयकर अपील सं/ I.T.A. No. 2261/Mum/2022 (निर्धारण वर्ा / Assessment Year: 1996-97) Jainsons Estate Pvt Ltd. बिधम/ Ito Range-3(2)(1) 1409 Maker Chambers, V Aayakar Bhavan, Vs. Jamnalal Bajaj Marg, Mumbai-400020. Nariman Point, Mumbai- 400021. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacj1047R (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Mayur Makadia Revenue By: Shri Shambhu Yadav सुनवाई की तारीख / Date Of Hearing: 06/12/2022 घोषणा की तारीख /Date Of Pronouncement: 31/01/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Company Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi Dated 15.07.2022 For Assessment Year 1996-97. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Confirming The Action Of The Ao Disallowing The Claim Of Depreciation Amounting To Rs.10,00,000/- On The Leased Assets (193 Gas Cylinders). Even Though Assessee Has Raised Eight (8) Grounds Of Appeal. Ground No. 1 To 6 Are Against The Action Of Ao Disallowing Depreciation Claimed By The Assessee On Gas Cylinder Leased To A Semi Government Company.

For Appellant: Shri Mayur MakadiaFor Respondent: Shri Shambhu Yadav

Section 132Section 143(2)Section 147Section 148

accepted the fact that these transaction are window dressing transaction only with the intention to raise the finance. The AO took note of the Investigation Wing report and also list of persons like assessee who all have taken benefit of the sham transaction by claiming 100% depreciation on such bogus ... were capitalised by the assessee in its books and being eligible for 100% depreciation it claimed depreciation. Later, the AO received information from the Investigation Wing that certain entities were engaged in issuing bogus sale bills of depreciable assets and one 9 A.Y. 1996-97 Jainsons Estate Pvt. Ltd. such

Shri Dinesh Singh Chhajed, Mumbai vs. Assistant Commissioner of Income Tax, Circle-32(1), Mumbai

In the result, appeal of the Assessee is allowed

ITA 1869/MUM/2022[2012-13]Status: DisposedITAT Mumbai31 Jan 2023AY 2012-13

Bench: Shri Amit Shukla, Jm & Shri S Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 1869/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2012-13) Assistant Shri Dinesh Singh Chhajed Commissioner Of B-606 Shroff Apartment, Income Tax, Circle- Sodawala Lane, Borivali(W), बिधम/ 32(1) Mumbai. Mumbai 400092 Room No.702, 7Th Floor, Vs. Kautilya Bhavan, C-41 To C-43, G-Block, Bkc(E), Mumbai400051 स्थायीलेखासं./जीआइआरसं./ Pan No. Abupc6016F (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Shri Rakesh Joshi प्रत्यथीकीओरसे/Respondent By : Shri Ujwal Kumar सुनवाईकीतारीख/ : 22.12.2022 Date Of Hearing घोषणाकीतारीख / : 31.01.2023 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeal Has Been Filed By The Assessee Against The Impugned Order Dated 23.06.2022, Passed By National Faceless

For Appellant: Shri Rakesh JoshiFor Respondent: Shri Ujwal Kumar

Section 143(1)Section 147Section 148Section 68Section 69

Rs.28,74,525/-, therefore, the Assessee was also treated as beneficiary of such bogus STCG. He has mainly referred to the findings of the investigation wing wherein some general modus operandi has been discussed that how some of the people are taking bogus long term capital gain across the country ... shares. However, the Ld. CIT (A) has simply confirmed the order of the Assessing Officer which was based on some report from investigation wing and after referring to various case laws on colorable device. 9. We have heard the rival submissions and also perused the relevant finding given

Shyam Products P.Ltd, New Delhi vs. ITO, Ward-23(3), New Delhi

In the result, appeal of the assessee is partly allowed as indicated above

ITA 4908/DEL/2018[2007-08]Status: DisposedITAT Delhi31 Jan 2023AY 2007-08

Bench: Shri Challa Nagendra Prasad, S.M.C.

For Appellant: Shri Suresh Kumar GuptaFor Respondent: Sr. D. R

Section 147Section 148Section 271Section 68Section 69C

DDIT Investigation has given a dictate to the CIT, Delhi-Ill, New Delhi to issue notice u/s 148 in the cases reported by the Investigation wing where jurisdiction lies in the charge of CIT. From the subject given in the above information, there is a clear direction ... 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 comprehensive detail comprising inter alia the beneficiary's name, value of entry taken

Optimist Electronics P.Ltd, New Delhi vs. ITO, Ward-19(2), New Delhi

In the result, appeal of the assessee is partly allowed as indicated above

ITA 4907/DEL/2018[2008-09]Status: DisposedITAT Delhi31 Jan 2023AY 2008-09

Bench: Shri Challa Nagendra Prasad, S.M.C.

For Appellant: Shri Suresh Kumar GuptaFor Respondent: Sr. D. R

Section 147Section 148Section 271Section 68Section 69C

The ITO, Ward-3(1)(1), Rajkot-Gujarat vs. Shri Girishkumar M. Puruswani, Rajkot-Gujarat

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

ITA 407/RJT/2016[2010-11]Status: DisposedITAT Rajkot31 Jan 2023AY 2010-11

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 139(1)Section 143(3)Section 147Section 148

under Mumbai Money Lending Act, 1946 in prescribed Form No. 3. The assessee also submitted before us summary of the notice issued by the Investigation Wing at different intervals from 19.04.2010 to 19.05.2015 is as follows: Notice Date Hearing Date Details Provided 19.04.2010 20.04.2010 Balance sheet, Profit & Loss account, Capital ... case also, the Revenue could not able to establish it is an unexplained cash deposited by the assessee, inspite of enquiries made by Investigation Wing for more than 5 years. Similarly the Assessing Officer failed to establish that the issuing of cheques to customers was fake or bogus

The ITO, Ward-3(1)(1), Rajkot-Gujarat vs. Shri Girishkumar M. Puruswani, Rajkot-Gujarat

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

ITA 406/RJT/2016[2009-10]Status: DisposedITAT Rajkot31 Jan 2023AY 2009-10

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 139(1)Section 143(3)Section 147Section 148

The ITO, Ward-3(1)(1), Rajkot-Gujarat vs. Shri Girishkumar M. Puruswani, Rajkot-Gujarat

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

ITA 405/RJT/2016[2008-09]Status: DisposedITAT Rajkot31 Jan 2023AY 2008-09

Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)

Section 139(1)Section 143(3)Section 147Section 148

Bhikam Chand Mutha, Mumbai vs. ITO 22(1)(3), Mumbai

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

ITA 2562/MUM/2022[2014-15]Status: DisposedITAT Mumbai30 Jan 2023AY 2014-15

Section 10(38)Section 143(1)Section 143(3)Section 147Section 69C

shown as a listed company in Active Category in the records of MCA. 4. The ld. AO had relied on the findings of the investigation wing of Kolkata which are outlined in para 7 of his assessment order. The main grievance of the ld. AO is that rise in share ... shares in the secondary market in prevailing market prices. 6.7. Hence the entire addition has been made merely by placing reliance on the Kolkata Investigation Wing report which are more general in nature and does not implicate the assessee herein in any manner whatsoever. We are unable to persuade ourselves

The ACIT, Central-1, Indore vs. M/S Prakash Oils Ltd., Dhar

In the result, the above captioned appeals filed by the Revenue as well as the

ITA 235/IND/2021[2011-12]Status: DisposedITAT Indore30 Jan 2023AY 2011-12

Bench: Shri C.M. Garg & Shri Bhagirath Mal Biyani

For Appellant: Shri Ajay Tulsian, CA &For Respondent: Shri P.K. Mishra, CIT, DR

Section 147

course of reassessment proceedings the AO noticed that a search and survey operation was conducted on commodity traders group including the assessee by the Investigation Wing Ahmadabad on 18.12.2014. During this operation it was found that with the help of members of NMCE exchange, the appellant has booked artificial losses ... transactions of the appellant with these brokers. It is also vehemently contended that during the survey conducted upon the appellant by the Ahmedabad Investigation Wing along with other commodity traders nothing incriminating or adverse was found which could even remotely suggest any wrong doing on the part of the appellant