“investigation wing”

ReassessmentSection 147Section 14712,584 judgments

The decision most relied on for investigation wing is Sarthak Securities Co. Pvt. Ltd. v. ITO (329 ITR 110), cited in 217 judgments on BharatTax.

Leading authorities on investigation wing

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.

PCIT v. M/s. Kesoram Industries 57

417 ITR 334 · 2019 · High Court

citing judgments

An assessment completed under Section 143(3) cannot be reopened after four years solely based on third-party information or opinions, such as from an Investigation Wing, without the Assessing Officer applying their own independent mind to the material and having new, independent material on record.

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.

Aradhna Estate Pvt. Ltd. v. DCIT

91 Taxmann.com 119 · 2018 · High Court

citing judgments

The Assessing Officer is justified in reopening assessment proceedings based on information received from the Investigation Wing, even when recording findings also rely on documents already on record, provided all procedural requirements for reassessment are met.

Judgments citing investigation wing

Keshri Exports, Surat vs. The Deputy Commissioner of Income Tax, Circle-3(3), Surat

In the result, appeals filed by assessees (ITA Nos

ITA 890/AHD/2017[2008-09]Status: DisposedITAT Surat28 Jun 2022AY 2008-09

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos. 889 To 893/Ahd/2017 Assessment Years: (2007-08 To 2013-14) (Physical Court Hearing) Keshri Exports, Vs. The Dcit, Circle-3(3), Shreeji Chambers, Sadhina Society, Surat. Varachha Road, Surat-395006. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aadfk 3785 D (Appellant) (Respondent) आयकर अपील सं./Ita Nos. 916 To 920/Ahd/2017 Assessment Years: (2007-08 To 2013-14) (Physical Court Hearing) The Dcit, Circle-3(3), Vs. Keshri Exports, Surat. Shreeji Chambers, Sadhina Society, Varachha Road, Surat-395006. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aadfk 3785 D (Appellant) (Respondent) आयकर अपील सं./Ita Nos. 753 To 754/Srt/2018 Assessment Years: (2010-11 To 2013-14) (Physical Court Hearing) The Dcit, Circle-3(3), Vs. Keshri Exports, Surat. Shreeji Chambers, Sadhina Society, Varachha Road, Surat-395006. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aadfk 3785 D (Appellant) (Respondent) आयकर अपील सं./Ita Nos. 761 To 762/Srt/2018 Assessment Years: (2010-11 To 2014-15) (Physical Court Hearing) Keshri Exports, Vs. The Dcit, Circle-3(3), Shreeji Chambers, Sadhina Society, Surat. Varachha Road, Surat-395006. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aadfk 3785 D (Appellant) (Respondent)

Section 132(4)Section 143(2)Section 143(3)Section 147Section 148Section 148(2)

Export has been considered for deciding above appeals en masse. 3. Brief facts qua the issue are that certain information was received from the Investigation Wing, Mumbai that certain parties on whom search action has been carried out by them have admitted during the search proceedings that they have been ... reopening. The ld CIT(A) while considering the ground of appeal against the reopening held that the AO has received report from investigation wing Mumbai, which indicate that the assessee is beneficiary of the accommodation entry operators. The accommodation entry provider admitted before investigation wing that he has given such

Keshri Exports, Surat vs. The Deputy Commissioner of Income Tax, Circle-3(3), Surat

In the result, appeals filed by assessees (ITA Nos

ITA 889/AHD/2017[2007-08]Status: DisposedITAT Surat28 Jun 2022AY 2007-08

Section 132(4)Section 143(2)Section 143(3)Section 147Section 148Section 148(2)

ACIT, Circle-4, Nagpur vs. Shri Vinod Balbhadra Goenka, Nagpur

In the result, appeal of the Revenue is dismissed

ITA 204/NAG/2017[2014-15]Status: DisposedITAT Nagpur28 Jun 2022AY 2014-15

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am Assessment Year: 2014-15 The Acit Vs. Shri Vinod Balbhadra Goenka Circle-4 247, Nandanvan Layout Nagpur Nagpur Pan No.:Aanpg 6841 N Appellant Respondent Revenue By :Shri Piyush Kolhe (Cit-Dr) Assessee By: Shri K.P. Dewani, Adv Date Of Hearing: 28/04/2022 Date Of Pronouncement: 28 /06 /2022 Order Per: Sandeep Gosain, J.M. This Is An Appeal By Revenue Against Order Of Learned Commissioner Of Income Tax (Appeals)-4, Nagpur Dated 30/03/2017 In Appeal No.Cit(A)- 4/198/16-17 For The Assessment Year 2014-15. The Grounds Raised By The Revenue In This Appeal Are As Under:

For Appellant: Shri K.P. Dewani, AdvFor Respondent: Shri Piyush Kolhe (CIT-DR)

Section 10(38)Section 131Section 68Section 69C

Travel Solutions Ltd.” is genuine only because the transactions were properly documented? ii. The Ld. CIT(A) erred in ignoring the findings of the Investigation Wing, Calcutta, that the shares were transferred to the beneficiary at a very nominal price through preferential allotment or off-line sales and the prices ... been tabulated on Page 2 of the assessment order. 3. In assessment order the A.O. has referred to Investigation in Kolkata conducted by Investigation Wing of the Income Tax Department on the issue of long term capital gain. The A.O. has discussed modus operandi for arranging long term capital gain

M/S New Viraj Housing Agency, Nagpur vs. ACIT, Central Circle-1(1), Nagpur

In the result, the appeals filed by the assessee for all the three years is allowed

ITA 183/NAG/2017[2010-11]Status: DisposedITAT Nagpur28 Jun 2022AY 2010-11

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am

For Appellant: Shri Sudesh Banthia CAFor Respondent: Shri Piyush Kolhe (CIT-DR)

Section 132Section 133ASection 133A(3)(ia)Section 139Section 143(2)Section 153ASection 153C

entry and ingress by the authorised officer in the premises to be searched after getting the search warrant signed. No one from the Investigation Wing or search party of Income Tax Department has ever visited the business remises of assessee firm. It is further submitted that no preliminary or concluding

Axykno Capital Services Ltd, Nagpur vs. DCIT Circle 1, Nagpur

In the result, both the appeals of the assessee are allowed

ITA 178/NAG/2017[2009-10]Status: DisposedITAT Nagpur28 Jun 2022AY 2009-10

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am

For Appellant: Shri Kapil Hirani, AdvFor Respondent: Shri Vitthal M. Bhosale (JCIT-DR)

Section 132(4)Section 147Section 148Section 68

material available on record. It is an undisputed fact that the AO has reopened the assessment on the basis of information received from the investigation wing which suggested that the Appellant was a beneficiary of accommodation entries provided by the companies controlled by Shri Praveen Kumar Jain. The basis ... same time of issue of notice under section 148 of the Act was having fresh tangible material in the form of information supplied by investigation wing which 6 ITA 178/NAG/ 2017 AXYKNO CAPITAL SERVICES LTD VS DCIT, CIRCLE- 1,NAGPUR is sufficient to form a reasonable belief of escapement

Dy. C.I.T. Cir., -2, Nagpur vs. M/S. Saral Metallugicals Pvt. Ltd., Nagpur

ITA 140/NAG/2017[2008-09]Status: DisposedITAT Nagpur28 Jun 2022AY 2008-09

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am Assessment Year: 2008-09 The Dcit Vs. M/S. Saral Metallurgicals Pvt. Ltd. Circle-2 31, 301, Sharda Manor, Cement Road Nagpur Shivaji Nagar, Nagpur – 440 010 Pan No.:Aajcs 5019 H Appellant Respondent

For Appellant: Shri Mahavir Atal, CAFor Respondent: Shri Vitthal M Bhosale (JCIT-DR)

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

order) It is apparent from the assessment order that the AO has relied on the report of the inspector of the Investigation Wing Kolkata, wherein it was stated that these 17 investor companies are non-existent on given address. This is the only enquiry and observation on which ... investor companies. The ld. CIT(A) has observed the fact that the financial statements of the investor companies were perused by the AO and Investigation Wing, Kolkata; and the sanctity & veracity of same is accepted by the AO.The relevant extract of CIT(A) order is reproduced below. 8 ITA 140/NAG

ACIT, Circle- 3, Nagpur vs. M/S Solaries Holding Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 509/NAG/2014[2008-09]Status: DisposedITAT Nagpur28 Jun 2022AY 2008-09

Bench: Shri Sandeep Gosain, Jm & Shri Arun Khodpia, Am Assessment Year: 2008-2009 The Acit Vs. M/S. Solaries Holdings Ltd. Circle-3, Thapar House, 124, Nagpur Janpath, New Delhi Panno.:Aahcs 59040 B Appellant Respondent Revenue By :Shripiyushkolhe (Cit-Dr) Assessee By: Shri K.P. Dewani (Adv.) Date Of Hearing: 18/04/2022 Date Of Pronouncement: 28/06/2022 Order Per: Sandeep Gosain, J.M. This Appeal Has Been Filed By The Department Against The Order Of The Ld. Cit-Ii, Nagpur Dated 01/09/2014 Passed U/S 143(3) Of The Income Tax Act, 1961 For The A.Y. 2008-09 Wherein The Department Has Raised The Following Grounds Of Appeal.

For Appellant: Shri K.P. Dewani (Adv.)For Respondent: ShriPiyushKolhe (CIT-DR)

Section 133A(1)(ia)Section 142(1)Section 143(1)Section 143(2)Section 143(3)

have considered the facts of the case and the submissions of the appellant. I have also perused the report of enquiry conducted by the investigation wing, Delhi and the remand report of the Id. AO as well as the forwarding comments of the it. CIT, Range-7, Nagpur. I have ... with the appellant for purchase and sale of 'Fabric' during the period of December, 2007. They have all appeared before the officers of the Investigation Wing in Delhi and confirmed the transactions and shown their books also. The only evidence all of them failed to 10 ACIT, Circle-3, Nagpur

Shri Manoj Amar Chand Tailor, Masuda Bijainagar vs. Income Tax Officer, Ward-1, Beawar

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

ITA 910/JPR/2019[2009-10]Status: DisposedITAT Jaipur28 Jun 2022AY 2009-10

For Appellant: Sh. Rajeev Sogani (CA)For Respondent: Ms Savita Bundas (CIT)

Section 147

whose director/proprietor were found indulged in racket of providing accommodation entries:- Sh. Manoj Amarchand Tailor, Bijainagar Vs.ITO, Ward-1, Beawar 6.4 The findings of Investigation Wing, Mumbai on Gautam Jain & others (Surat based Diamond concerns) are as under: “1. The directors/proprietors of all these concerns admitted on oath that ... jurisdictional AO of Jain Brothers [PB 146]. Hence, the information was received from the AO of search party and not from the Investigation Wing. 2.2. Reassessment pursuant to material found in search can be done through recourse to section 153C only and not by invoking the provisions of section 147/148

Income Tax Officer, Ward-1, Beawar vs. Shri Manoj Amar Chand Tailor, Masuda Bijainagar

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

ITA 819/JPR/2019[2009-10]Status: DisposedITAT Jaipur28 Jun 2022AY 2009-10

For Appellant: Sh. Rajeev Sogani (CA)For Respondent: Ms Savita Bundas (CIT)

Section 147

Dnyandeo Laxman Rajale, Aurangabad vs. Assistant Commissioner of Income-Tax, Circle - 1, Aurangabad

Appeal is dismissed in above terms

ITA 80/PUN/2019[2014-15]Status: DisposedITAT Pune28 Jun 2022AY 2014-15

Bench: Shri S. S. Godara & Shri Dr. Dipak P. Ripoteआयकर अपील सं. / Ita No.80/Pun/2019 िनधा"रण वष" / Assessment Year: 2014-15 Dnyandeo Laxman Rajale, Vs. Acit, Circle-1, Plot No.349, Growth Centre, Aurangabad. Mahanagar-1, Midc, Waluj, Aurangabad- 431136. Pan : Aaqpr2829E Appellant Respondent Assessee By : Smt. Deepa Khare Revenue By : Shri Arvind Desai Date Of Hearing : 14.06.2022 Date Of Pronouncement : 28.06.2022 आदेश / Order Per S. S. Godara, Jm: This Assessee’S Appeal For Assessment Year 2014-15 Arises Against The Cit(A)- 2, Aurangabad’S Order Dated 29.11.2018 Passed In Case No. Abd/Cit(A)- 2/377/2016-17 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short “The Act”. Heard Both The Parties. Case Files Perused. 2. The Assessee’S Sole Substantive Grievance Raised In The Instant Appeal Challenges Correctness Of Both The Lower Authorities’ Action Denying Section 10(38) Long Term Capital Gains’ Exemption Thereby

For Appellant: Smt. Deepa KhareFor Respondent: Shri Arvind Desai

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

bogus after examining the above-stated scrip’s trading pattern, financials, P&L account as well as in light of the department’s investigation wing’s report indicating abnormal price movement in the stock market. Page 4 in paragraphs 4.2 onwards in assessment order reveals that he had also

Assistant Commissioner of Income-Tax, Central Circle -2, Nashik vs. M/S. Kirti Foods Ltd, Latur

In the result, appeal of the Revenue is dismissed

ITA 1684/PUN/2019[2009-10]Status: DisposedITAT Pune28 Jun 2022AY 2009-10

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.1684/Pun/2019 िनधा"रणवष" / Assessment Year : 2009-10 The Assistant M/S.Kirti Foods Ltd, Commissioner Of Income Vs 79-C, Market Yard, Tax, Circle-2, Nahik. Latur – 413512. Pan: Aabck 5376 K Appellant/ Assessee Respondent /Revenue Assessee By None. Revenue By Shri S P Walimbe – Dr Date Of Hearing 07/06/2022 Date Of Pronouncement 28/06/2022 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Revenue Directed Against The Order Of Ld.Commissioner Of Income Tax(Appeals)-12, Pune For The A.Y.2009-10 Dated 30.08.2019. 2. Brief Facts Of The Case Are That The Regular Assessment Under Section 143(3) Was Finalized Declaring Total Income At Rs.2,90,85,170/-. The Appellant Filed Appeal Before The Ld.Cit(A) & Further Itat Where It Got Partial Relief. The Assessing Officer Received Information From The Sales Tax Department Regarding Parties Who Provided Only Bills Without Actual Delivery Of Goods, There Were Certain Parties Who Provided Such Bills To The Assessee

Section 143(3)Section 147Section 148

Nikunj Eximp Enterprises Pvt. Ltd. that the revenue is required to furnish the information received from the Sales Tax Department or from the Investigation Wing of the Department to the assessee allowing the assessee to test the veracity of such information otherwise such information could not be relied upon. This

G R Randya Share Broking Ltd, Mumbai vs. DCIT-CC-2(2), Mumbai

In the result, appeal filed by the assessee is dismissed for both the years

ITA 6174/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Jun 2022AY 2011-12

Bench: Shri Vijay Pal Rao & Shri Gagan Goyal

For Appellant: Sh. Dharmesh Shah & Dhaval ShahFor Respondent: Sh. Hoshang B. Irani, DR

Section 133(6)Section 139Section 147Section 148

recorded for the reopening of the case. The same has been removed by passing order dated: 22-11-2017.” 4. Assessee was asked by investigation wing to explain the amount deposited amounting to Rs 25, 27, 83,993/-. Further notice u/s 133(6) issued and bank accounts of the assessee

M/S Rittal India Pvt Ltd, Doddaballapur vs. Assistant Commissioner of Income Tax Circle-2, Ltu, Bangalore

In the result, the appeal of the assessee is allowed

ITA 2868/BANG/2018[2014-15]Status: DisposedITAT Bangalore28 Jun 2022AY 2014-15

Bench: Shri N.V Vasudevan & Ms. Padmavathy S

For Appellant: Shri Ramasubramaniam, C.AFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)

Section 143(3)Section 92Section 92C

findings regarding transfer pricing issues in respect of international transactions or specified domestic transactions or both have been recorded by the Investigation Wing or the AO. 3.4 For cases to be referred by the AO to the TPO in accordance with paragraphs 3.2 and 3.3 above, in respect of transactions

ACIT, Cir - 6(2), Kolkata vs. West Bengal Agro Industries Corporation Ltd., Kolkata

In the result the cross objections of the assessee for A

ITA 2428/KOL/2019[2013-14]Status: DisposedITAT Kolkata27 Jun 2022AY 2013-14

Bench: Shri Sanjay Garg & Shri Rajesh Kumar]

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

aside. In this case, the assessment was completed u/s 143(3) and thereafter the AO received the information from Investigation Wing that the assessee has received bogus loans in the form of accommodation entries and on that basis the case of the assessee was reopened. In the case of Rajivraj

ACIT, Cir - 6(2), Kolkata vs. West Bengal Agro Industries Corporation Ltd., Kolkata

In the result the cross objections of the assessee for A

ITA 2427/KOL/2019[2012-13]Status: DisposedITAT Kolkata27 Jun 2022AY 2012-13

Bench: Shri Sanjay Garg & Shri Rajesh Kumar]

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

ACIT, Cir - 6(2), Kolkata vs. West Bengal Agro Industries Corporation Ltd., Kolkata

In the result the cross objections of the assessee for A

ITA 2426/KOL/2019[2011-12]Status: DisposedITAT Kolkata27 Jun 2022AY 2011-12

Bench: Shri Sanjay Garg & Shri Rajesh Kumar]

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

Rare Diamonds Pvt. Ltd, Mumbai vs. ACIT CC 1(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 313/MUM/2022[2015-16]Status: DisposedITAT Mumbai27 Jun 2022AY 2015-16

Bench: Shri Kuldip Singh & Shri Om Prakash Kantsr

For Appellant: Shri Suchek AnchaliayaFor Respondent: Shri. Kiran P. Unavekar

Section 132

facts qua the issue in dispute are that a search and seizure action under section 132 of the Act was carried out by the Investigation Wing, Mumbai on 03/10/2013 in the case of Sh. Bhanwar Lal Jain Group. During the course of the search action, Sh. Bhanwar Lal Jain admitted

Mahagun India Pvt Ltd, New Delhi vs. DCIT Central Circle-3, New Delhi

ITA 8145/DEL/2019[2012-13]Status: DisposedITAT Delhi27 Jun 2022AY 2012-13

Bench: Shri Saktijit Dey & Shri Anadee Nath Misshraassessment Year: 2012-13 Mahagun India Pvt. Ltd., Vs. Dcit, Central Circle- 3, B-66, Ff, Vivek Vihar, New Delhi. Delhi.

Section 132(1)Section 143(3)Section 153ASection 23Section 23(1)

completed assessment in the absence of any incrementing material being found either during the search or post search investigation being made by the Investigation Wing Noida as well as the assessment wing at New Delhi u/s. 153A of the Act. 2. That both the authority below are erred under ... abating completed assessment in the absence of any incrementing material being found either during the search or post search investigation being made by the Investigation Wing Noida as well as the assessment wing at New Delhi. 8. It is also observed, in respect of ground No.2, assessee has made detailed

The Assistant Commissioner of Income Tax, Central Circle-4, Surat vs. Smt. Falguni Sandipkumar Naik, Surat

Appeal of the Revenue is dismissed

ITA 659/SRT/2018[2014-15]Status: DisposedITAT Surat24 Jun 2022AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A Nos. 19, 20 & Ita 659/Srt/2018 (Assessment Years: 2012-13, 2013-14 & 2014-15) (Hearing In Physical Court)

Section 132Section 133(6)Section 153ASection 254(1)Section 68

07/06/2018 31/03/2012 Enterprise (Prop. Hemantbhai D. Gajjar) 6. The Assessing Officer recorded that he was in receipt of information from the Investigation Wing that Shri Chetan kumar Kantilal Shah (Proprietor of Veer Corporation, one of the lender from whom the assessee received unsecured 10 IT(SS)A 19, 20 & 659/SRT/2018 ... unexplained cash credit or under Section 37(1) as disallowance expenditure. On the objection of Assessing Officer that he has received information from Investigation Wing wherein that the proprietor of Veer Corporation namely Chetankumar K Shah is engaged in the business of providing accommodation entry and the same is treated

M/S. Parvati Fabrics Ltd., Surat vs. The Asstt. Commissioner of Income Tax, Circle-2(1)(1), Surat

ITA 1564/AHD/2016[2012-13]Status: DisposedITAT Surat24 Jun 2022AY 2012-13

For Appellant: Shri Aaditya Nemani, CAFor Respondent: Shri Anupama Singla, Sr. DR

Section 133(6)Section 143(3)Section 234ASection 271(1)(C)Section 68

holding that the assessee failed to prove identity of depositors since they were not traceable at address as per the inquiry conducted by investigation wing. Ld. CIT(A) ought to have deleted addition when all the depositors responded to the notice under section 133(6) by assessing officer confirming transaction ... regular business activity and the only source of funds were share capital/share premium. The assessing officer on the basis of the information received from Investigation Wing Kolkata found that enquiries made by the Investigation Wing Kolkata revealed that these companies do not exist at the given addresses and no proper