← 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

The ITO, Ward-5(3)(1), Ahmedabad vs. Dharmendra C Shah- HUF, Ahmedabad

In the result appeal of the Revenue is hereby dismissed

ITA 1/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad09 Dec 2022AY 2015-16

Bench: Shri Waseem Ahmed

For Appellant: Shri Chetan Agarwal, A.RFor Respondent: Ms M.M Garg, Sr.D.R
Section 10(38)Section 143(3)Section 68

scrip of M/s Sunrise Asian Ltd was found as penny stock which was utilized for providing bogus long term capital gain by the investigation wing of Income Tax Kolkata. The name of the Sunrise Asian Ltd included in the list of 84 scrip identified by the Investigation wing as penny ... documents. The only objection raised is that the scrip from which the assessee had earned Long Term Capital Gain has been held by the Investigation Wing of the Revenue to be a paper entity and that this scrip was being used for creating artificial capital gain. The objection

Shri Kirit Kalidas Gajjar, Ahmedabad vs. ITO, Ward-1(2)(2), Ahmedabad

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

ITA 2444/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad09 Dec 2022AY 2012-13

Bench: Ms Suchitra Kamble & Shri Waseem Ahmedआयकर अपील सं./Ita No. 2444/Ahd/2018 िनधा"रण वष"/Asstt. Year: 2012-2013 Shri Kirit Kalidas Gajjar, I.T.O, 1807, Pada Pole, Vs. Ward-1(1)(2), Gandhi Road, Ahmedabad. Ahmedabad-380001. Pan: Abepg4967B

For Appellant: Shri S.N. Divatia, A.RFor Respondent: Shri Ramesh Kumar, Sr. D.R
Section 132Section 143(1)Section 143(3)Section 147Section 148

with two companies, which companies were used for bogus LTCG and contrived losses. The Assessing Officer had also received specific information from the said investigating wings outlining the systemic evasion A.Y. 2012-13 7 of taxes by the petitioner and others, and had therefore reason to believe that the petitioner ... respondent had initiated the proceedings under section 147 on the basis of incorrect facts or on the basis of borrowed belief of the Investigation Wings as sought to be submitted by the assessee. The court also does not agreed with the submission made by the assessee that the respondent could

Shardashree Ispat Ltd., Nagpur vs. Deputy Commissioner of Income Tax, Circle-3, Nagpur

Appeal is dismissed in above terms

ITA 166/NAG/2021[2012-13]Status: DisposedITAT Nagpur08 Dec 2022AY 2012-13

Bench: Shri S.S. Godara & Shri Dr. Dipak P. Ripote"नधा"रण वष" / Assessment Year : 2012-13

Section 133(6)Section 250Section 68

lieu of commission. Sri Vinod Kumar Jajoo was one of the person who was arranging these transactions. He had given statement before the investigation wing and recorded by the ADIT(lnv) Raipur at the office of ITO(lnv./),Unit-1,Kolkata on 05.10.2017. Sri Vinod Kumar Jajoo admitted that ... relied upon by the assessee are clearly not applicable to the fact of the case. Hence, the A.O. had got specfic information from the investigation wing and on that the A.O has formed the opinion. Reliance is placed upon the judgement of Hon’ble 4 Shardashree Ispat Limited Supreme Court

Deputy Commissioner of Income Tax, Central Circle Ajmer vs. Mukesh Kumar Somani, Kishangarh

In the result appeals of the revenue in ITA Nos

ITA 352/JPR/2022[2020-21]Status: DisposedITAT Jaipur08 Dec 2022AY 2020-21
For Appellant: Shri C. M Agarwal (C.A.)For Respondent: Shri Shailendra Sharma (CIT)
Section 143(3)Section 69

assessing officer for the reference to valuation. From perusal it is clear that ld. AO can refer the matter for valuation but the Investigation wing cannot refer the matter for valuation. Secondly the matter was referred for valuation to ascertain the fair market value as on 14.02.2020. He has also ... Based on various juridical pronouncements that no reference can be made on the basis of statement recorded during the course of search by the Investigation wing and is not in accordance with the law. Thus, no addition can be made under section 153A of the IT Act unless or until

Deputy Commissioner of Income Tax, Central Circle Ajmer vs. Alok Malpani, Kishangarh

In the result appeals of the revenue in ITA Nos

ITA 335/JPR/2022[2020-21]Status: DisposedITAT Jaipur08 Dec 2022AY 2020-21
For Appellant: Shri C. M Agarwal (C.A.)For Respondent: Shri Shailendra Sharma (CIT)
Section 143(3)Section 69

assessing officer for the reference to valuation. From perusal it is clear that ld. AO can refer the matter for valuation but the Investigation wing cannot refer the matter for valuation. Secondly the matter was referred for valuation to ascertain the fair market value as on 14.02.2020. He has also ... Based on various juridical pronouncements that no reference can be made on the basis of statement recorded during the course of search by the Investigation wing and is not in accordance with the law. Thus, no addition can be made under section 153A of the IT Act unless or until

Mamta Lalit Jain, Thane vs. ITO WD 1(2), Kalyan

In the result, appeal of the assessee is allowed

ITA 1626/MUM/2022[2012-13]Status: DisposedITAT Mumbai08 Dec 2022AY 2012-13
Section 131Section 147

split of shares. 4. The Ld.AO reopened the assessment after recording reasons wherein it was pointed out that he had received information from DDIT, Investigation Wing, Mumbai wherein Gemstone Investment Ltd scrip dealt with by the assessee was treated as a penny stock and assessee being one of the beneficiaries ... considered opinion, is a normal return expected by any legitimate investor in the share market. We further find that the information received from Investigation Wing by the Ld.AO vide letter dated 06/03/2019 was placed on record by the Ld.AR before us. On perusal of the said letter, we find that

Mora] Finanz Corporation, Navi Mumbai vs. DCIT Central Cirle - 5(2), Mumbai

In the result, appeal filed by the assessee is partly allowed as per above direction

ITA 155/MUM/2022[2012-13]Status: DisposedITAT Mumbai08 Dec 2022AY 2012-13

Bench: Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 142(1)Section 143(2)Section 148Section 22

next Assessment Years also. 11. On the other hand, Ld.DR submitted that the assessee has declared closing stock before the Assessing Officer and the Investigation Wing, as per which the flats were unsold. Therefore, the decision of the CIT v. M/s. Ansal Housing Finance and Leasing Company Limited (supra) applicable ... submissions and material placed on record, we observe that during the search, the assessee had declared closing stock as per their books to the Investigation Wing. The same was (A.Ys: 2010-11, 2011-12 & 2012-13) MorajFinanz Corporation submitted before the AO. From the above details submitted by the assessee

Moraj Finanz Corporation, Navi Mumbai vs. Dclt Central Cirle - 5(2), Mumbai

In the result, appeal filed by the assessee is partly allowed as per above direction

ITA 154/MUM/2022[2011-12]Status: DisposedITAT Mumbai08 Dec 2022AY 2011-12

Bench: Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 142(1)Section 143(2)Section 148Section 22

next Assessment Years also. 11. On the other hand, Ld.DR submitted that the assessee has declared closing stock before the Assessing Officer and the Investigation Wing, as per which the flats were unsold. Therefore, the decision of the CIT v. M/s. Ansal Housing Finance and Leasing Company Limited (supra) applicable ... submissions and material placed on record, we observe that during the search, the assessee had declared closing stock as per their books to the Investigation Wing. The same was (A.Ys: 2010-11, 2011-12 & 2012-13) MorajFinanz Corporation submitted before the AO. From the above details submitted by the assessee

Moraj Finanz Corporation, Navi Mumbai vs. DCIT, Central Circle - 5(2), Mumbai

In the result, appeal filed by the assessee is partly allowed as per above direction

ITA 153/MUM/2022[2010-11]Status: HeardITAT Mumbai08 Dec 2022AY 2010-11

Bench: Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 142(1)Section 143(2)Section 148Section 22

next Assessment Years also. 11. On the other hand, Ld.DR submitted that the assessee has declared closing stock before the Assessing Officer and the Investigation Wing, as per which the flats were unsold. Therefore, the decision of the CIT v. M/s. Ansal Housing Finance and Leasing Company Limited (supra) applicable ... submissions and material placed on record, we observe that during the search, the assessee had declared closing stock as per their books to the Investigation Wing. The same was (A.Ys: 2010-11, 2011-12 & 2012-13) MorajFinanz Corporation submitted before the AO. From the above details submitted by the assessee

Pr. Commissioner of Income Tax -12 vs. Smt. Bindu Garg

ITA - 519 / 2022HC Delhi08 Dec 2022
Section 142Section 68

through banking channels. 21. 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

Rupesh Vyas, Indore vs. The ACIT3(1), Indore

In the result, this appeal of assessee is dismissed

ITA 909/IND/2018[2014-15]Status: DisposedITAT Indore07 Dec 2022AY 2014-15

Bench: Ms. Suchitra Kamble & Shri B.M. Biyani

Section 10(38)Section 143(3)Section 68Section 69C

surveillance measure the scrip of M/s Lifeline Drugs and Pharma Ltd. III. The beneficiaries were confronted in course of further investigation by the investigation Wing. Almost all of them barring a few have accepted having taken the entries for a commission. A sum of crores has been voluntarily surrendered ... times within a short span of period which IS extremely unusual. The shares in which the appellant traded are identified as Penny Shares by Investigation Wing of Kolkata. 4.2.4. The reliance is placed on the following judicial pronouncements:- 1. Sanjay Bimalchand Jain L/H Shantidevi Bimalchand Jain Vs PCIT (ITA No.18/2017

Rakhi Dineshkumar Runwal, Jalna vs. Income-Tax Officer, Ward - 1, Jalna

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

ITA 1821/PUN/2018[2015-16]Status: DisposedITAT Pune07 Dec 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.1821/Pun/2018 िनधा"रण वष" / Assessment Year: 2015-16 Rakhi Dineshkumar Runwal, Vs. Ito, Ward-1, Jalna. 72, Satyam, Preetisudha Nagar, Mantha Road, Jalna- 431203. Pan : Afzpr4123B Appellant Respondent Assessee By None : Revenue By : Shri Ramnath P. Murkunde Date Of Hearing : 25.11.2022 Date Of Pronouncement : 07.12.2022 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 1, Aurangabad [‘The Cit(A)’] Dated 27.09.2018 For The Assessment Year 2015-16. 2. Briefly, The Facts Of The Case Are That The Appellant Is An Individual. The Return Of Income For The Assessment Year 2015-16 Was Filed On 27.11.2015 Disclosing Total Income Of Rs.423/-. Against The Said Return Of Income, The Assessment Was Completed By The Income Tax Officer, Ward-1, Jalna (‘The Assessing Officer’) Vide Order Dated 30.12.2017 Passed U/S 143(3) Of The Income Tax

For Respondent: Shri Ramnath P. Murkunde
Section 10(38)Section 143(3)

shares of M/s. Lifeline Drugs & Pharma Ltd. and subsequent sale is nothing but a bogus transaction by relying upon the investigation report by the Investigation Wing of the Department and the Securities & Exchange Board of India (SEBI). The Assessing Officer had also analyzed the modus operandi adopted by the appellant ... sake of brevity, the modus operandi is not discussed herein. The appellant was also provided the copy of statements recorded by the Investigation Wing of the Department, Calcutta from Shri Pavan Kumar Kayan who is director of Biswajit Impex alleged to be involved in providing accommodation entries bogus long term

Jasodadevi Rajaram Jajoo, Surat vs. Income Tax Officer WD.-2(2)(2), Surat

In the result, appeal filed by the assessee (in ITA No

ITA 185/SRT/2021[2011-12]Status: DisposedITAT Surat06 Dec 2022AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita Nos.183 To 184/Srt/2021 ("नधा"रणवष" / Assessment Years: (2011-12) (Physical Court Hearing) Damodar Jajoo, Vs. The Ito, Ward-2(2)(1), 429-432, Golden Point, Nr. Bsnl Surat. Office, Falsawadi, Ring Road, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aawpj4341H (Assessee) (Respondent) आयकरअपीलसं./Ita No.185/Srt/2021 ("नधा"रणवष" / Assessment Year: (2012-13) Jasodadevi Rajaram Jajoo, Vs. The Ito, Ward-2(2)(2), 429-432, Golden Point, Ring Surat. Road, Falsawadi, Begampura, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaqpj7257E (Assessee) (Respondent) Assessee By Ms Richa Tosniwal, Ca & Shri Harishankar Tosniwal, Ca Shri J. K. Chandnani, Sr. Dr Respondent By Date Of Hearing 21/11/2022 Date Of Pronouncement 09/12/2022

Section 10(38)Section 143(2)Section 143(3)Section 147Section 148Section 69

From the reasons recorded, the following facts and sequence of events are observed: (a) Credible information was received by the AO from the DDIT Investigation Wing, Kolkata, regarding BSE listed Penny stock. (b) The AO has noted that the information received from the DDIT Investigation Wing, Kolkata, has revealed that ... said that the assessee has established the identity of the parties. It has further been observed that the report of the investigation wing cannot conclusively prove that the assessee’s own monies were brought back in the form of share application money. As noted in the earlier paragraph

Damodar Jajoo, Surat vs. Income Tax Officer, WD.2(2)(1), Surat

In the result, appeal filed by the assessee (in ITA No

ITA 184/SRT/2021[2012-13]Status: DisposedITAT Surat06 Dec 2022AY 2012-13

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita Nos.183 To 184/Srt/2021 ("नधा"रणवष" / Assessment Years: (2011-12) (Physical Court Hearing) Damodar Jajoo, Vs. The Ito, Ward-2(2)(1), 429-432, Golden Point, Nr. Bsnl Surat. Office, Falsawadi, Ring Road, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aawpj4341H (Assessee) (Respondent) आयकरअपीलसं./Ita No.185/Srt/2021 ("नधा"रणवष" / Assessment Year: (2012-13) Jasodadevi Rajaram Jajoo, Vs. The Ito, Ward-2(2)(2), 429-432, Golden Point, Ring Surat. Road, Falsawadi, Begampura, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaqpj7257E (Assessee) (Respondent) Assessee By Ms Richa Tosniwal, Ca & Shri Harishankar Tosniwal, Ca Shri J. K. Chandnani, Sr. Dr Respondent By Date Of Hearing 21/11/2022 Date Of Pronouncement 09/12/2022

Section 10(38)Section 143(2)Section 143(3)Section 147Section 148Section 69

From the reasons recorded, the following facts and sequence of events are observed: (a) Credible information was received by the AO from the DDIT Investigation Wing, Kolkata, regarding BSE listed Penny stock. (b) The AO has noted that the information received from the DDIT Investigation Wing, Kolkata, has revealed that ... said that the assessee has established the identity of the parties. It has further been observed that the report of the investigation wing cannot conclusively prove that the assessee’s own monies were brought back in the form of share application money. As noted in the earlier paragraph

Damodar Jajoo, Surat vs. Income Tax Officer, WD.2(2)(1), Surat

In the result, appeal filed by the assessee (in ITA No

ITA 183/SRT/2021[2011-12]Status: DisposedITAT Surat06 Dec 2022AY 2011-12

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita Nos.183 To 184/Srt/2021 ("नधा"रणवष" / Assessment Years: (2011-12) (Physical Court Hearing) Damodar Jajoo, Vs. The Ito, Ward-2(2)(1), 429-432, Golden Point, Nr. Bsnl Surat. Office, Falsawadi, Ring Road, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aawpj4341H (Assessee) (Respondent) आयकरअपीलसं./Ita No.185/Srt/2021 ("नधा"रणवष" / Assessment Year: (2012-13) Jasodadevi Rajaram Jajoo, Vs. The Ito, Ward-2(2)(2), 429-432, Golden Point, Ring Surat. Road, Falsawadi, Begampura, Surat-395002, Gujarat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaqpj7257E (Assessee) (Respondent) Assessee By Ms Richa Tosniwal, Ca & Shri Harishankar Tosniwal, Ca Shri J. K. Chandnani, Sr. Dr Respondent By Date Of Hearing 21/11/2022 Date Of Pronouncement 09/12/2022

Section 10(38)Section 143(2)Section 143(3)Section 147Section 148Section 69

From the reasons recorded, the following facts and sequence of events are observed: (a) Credible information was received by the AO from the DDIT Investigation Wing, Kolkata, regarding BSE listed Penny stock. (b) The AO has noted that the information received from the DDIT Investigation Wing, Kolkata, has revealed that ... said that the assessee has established the identity of the parties. It has further been observed that the report of the investigation wing cannot conclusively prove that the assessee’s own monies were brought back in the form of share application money. As noted in the earlier paragraph

Rupesh Vyas, Indore vs. The ACIT3(1), Indore

In the result, this appeal of assessee is dismissed

ITA 50/IND/2020[150-16]Status: DisposedITAT Indore06 Dec 2022

Bench: Shri T.R. Senthil Kumar & Shri B.M. Biyani

Section 10(38)Section 143(3)Section 68Section 69C

suspended trading of the scrip of M/ s Lifeline Drugs &. Pharrna Ltd. iii. The beneficiaries were confronted in course of further investigation by the Investigation Wing. Barring a few, almost, all of them have accepted having taken the entries for a commission. A sum of crores has been voluntarily surrendered ... Income Tax Act] 1961 was completed on the basis of detailed report received on the basis of country vide investigation carried out by investigation wing of Kolkata which revealed that there was an organized racket of generating bogus entries of LTCG which is exempt u/s 10(38). In this case

Asst CIT CC 1 (3), Mumbai vs. M/S Poonam Skyline Construction, Mumbai

In the result, all the revenue appeals are dismissed and the appeal of the assessee is allowed

ITA 752/MUM/2020[2012-13]Status: DisposedITAT Mumbai05 Dec 2022AY 2012-13
Section 132(1)Section 133A

assessee in order to discharge the burden shifted to his shoulders. On the contrary, the AO has heavily relied upon the report of the investigation wing with regard to the proceedings that took place in the case of Bhanwarlal Jain group. Further, the AO has also placed reliance

Asst CIT CC 1 (3), Mumbai vs. M/S Poonam Shanti Developers, Mumbai

In the result, all the revenue appeals are dismissed and the appeal of the assessee is allowed

ITA 751/MUM/2020[2013-14]Status: DisposedITAT Mumbai05 Dec 2022AY 2013-14
Section 132(1)Section 133A

assessee in order to discharge the burden shifted to his shoulders. On the contrary, the AO has heavily relied upon the report of the investigation wing with regard to the proceedings that took place in the case of Bhanwarlal Jain group. Further, the AO has also placed reliance

Asst CIT CC 1 (3), Mumbai vs. M/S Poonam Realty, Mumbai

In the result, all the revenue appeals are dismissed and the appeal of the assessee is allowed

ITA 750/MUM/2020[2014-15]Status: DisposedITAT Mumbai05 Dec 2022AY 2014-15
Section 132(1)Section 133A

assessee in order to discharge the burden shifted to his shoulders. On the contrary, the AO has heavily relied upon the report of the investigation wing with regard to the proceedings that took place in the case of Bhanwarlal Jain group. Further, the AO has also placed reliance

Asst CIT CC 1 (3), Mumbai vs. M/S Poonam Mega Developers, Mumbai

In the result, all the revenue appeals are dismissed and the appeal of the assessee is allowed

ITA 749/MUM/2020[2012-13]Status: DisposedITAT Mumbai05 Dec 2022AY 2012-13
Section 132(1)Section 133A

assessee in order to discharge the burden shifted to his shoulders. On the contrary, the AO has heavily relied upon the report of the investigation wing with regard to the proceedings that took place in the case of Bhanwarlal Jain group. Further, the AO has also placed reliance