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“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
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.

PCIT v. M/s. Kesoram Industries 57
417 ITR 334 · 2019 · High Court
96
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
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.

Aradhna Estate Pvt. Ltd. v. DCIT
91 Taxmann.com 119 · 2018 · High Court
56
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

Brijesh Gupta HUF, New Delhi vs. ITO Ward-31(4), New Delhi

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

ITA 7437/DEL/2019[2011-12]Status: DisposedITAT Delhi26 May 2022AY 2011-12

Bench: Shri Challa Nagendra Prasad, S.M.C. आ.अ.सं./ I.T.A No. 5711/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 R. C. Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaghr9088D A N D आ.अ.सं./ I.T.A No. 7437/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Brijesh Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2833G A N D आ.अ.सं./ I.T.A No. 5474/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Bithal Nath Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2834G A N D आ.अ.सं./ I.T.A No. 5475/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Amit Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aahha3209G

For Appellant: Shri J. P. Sharma, A. RFor Respondent: Shri Om Parkash, Sr. D. R
Section 10(38)Section 147Section 151Section 68Section 69C

examined that that this script was also indulged in self-trading. 2.1. After examining of trade data of M/s DMC Education Ltd by the Investigation Wing, Mumbai, it was analyzed that the following beneficiary has also traded in the script of M/s DMC Education Ltd during ... mind. Referring to the following decisions, he submitted that where, the Assessing Officer has reopened the assessment on the basis of information from the Investigation Wing and without independent application of mind, such reassessment proceedings are held to be invalid being not accordance with law. For the above proposition

Ganesh Gupta HUF, New Delhi vs. ITO Ward 31(4), New Delhi

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

ITA 5813/DEL/2019[2011-12]Status: DisposedITAT Delhi26 May 2022AY 2011-12

Bench: Shri Challa Nagendra Prasad, S.M.C. आ.अ.सं./ I.T.A No. 5711/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 R. C. Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaghr9088D A N D आ.अ.सं./ I.T.A No. 7437/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Brijesh Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2833G A N D आ.अ.सं./ I.T.A No. 5474/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Bithal Nath Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2834G A N D आ.अ.सं./ I.T.A No. 5475/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Amit Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aahha3209G

For Appellant: Shri J. P. Sharma, A. RFor Respondent: Shri Om Parkash, Sr. D. R
Section 10(38)Section 147Section 151Section 68Section 69C

examined that that this script was also indulged in self-trading. 2.1. After examining of trade data of M/s DMC Education Ltd by the Investigation Wing, Mumbai, it was analyzed that the following beneficiary has also traded in the script of M/s DMC Education Ltd during ... mind. Referring to the following decisions, he submitted that where, the Assessing Officer has reopened the assessment on the basis of information from the Investigation Wing and without independent application of mind, such reassessment proceedings are held to be invalid being not accordance with law. For the above proposition

Rc Gupta (HUF), New Delhi vs. ITO Ward - 31(4), New Delhi

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

ITA 5711/DEL/2019[2011-12]Status: DisposedITAT Delhi26 May 2022AY 2011-12

Bench: Shri Challa Nagendra Prasad, S.M.C. आ.अ.सं./ I.T.A No. 5711/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 R. C. Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaghr9088D A N D आ.अ.सं./ I.T.A No. 7437/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Brijesh Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2833G A N D आ.अ.सं./ I.T.A No. 5474/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Bithal Nath Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2834G A N D आ.अ.सं./ I.T.A No. 5475/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Amit Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aahha3209G

For Appellant: Shri J. P. Sharma, A. RFor Respondent: Shri Om Parkash, Sr. D. R
Section 10(38)Section 147Section 151Section 68Section 69C

examined that that this script was also indulged in self-trading. 2.1. After examining of trade data of M/s DMC Education Ltd by the Investigation Wing, Mumbai, it was analyzed that the following beneficiary has also traded in the script of M/s DMC Education Ltd during ... mind. Referring to the following decisions, he submitted that where, the Assessing Officer has reopened the assessment on the basis of information from the Investigation Wing and without independent application of mind, such reassessment proceedings are held to be invalid being not accordance with law. For the above proposition

Amit Gupta (HUF), New Delhi vs. ITO Ward - 31(4), New Delhi

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

ITA 5475/DEL/2019[2011-12]Status: DisposedITAT Delhi26 May 2022AY 2011-12

Bench: Shri Challa Nagendra Prasad, S.M.C. आ.अ.सं./ I.T.A No. 5711/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 R. C. Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaghr9088D A N D आ.अ.सं./ I.T.A No. 7437/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Brijesh Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2833G A N D आ.अ.सं./ I.T.A No. 5474/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Bithal Nath Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2834G A N D आ.अ.सं./ I.T.A No. 5475/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Amit Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aahha3209G

For Appellant: Shri J. P. Sharma, A. RFor Respondent: Shri Om Parkash, Sr. D. R
Section 10(38)Section 147Section 151Section 68Section 69C

examined that that this script was also indulged in self-trading. 2.1. After examining of trade data of M/s DMC Education Ltd by the Investigation Wing, Mumbai, it was analyzed that the following beneficiary has also traded in the script of M/s DMC Education Ltd during ... mind. Referring to the following decisions, he submitted that where, the Assessing Officer has reopened the assessment on the basis of information from the Investigation Wing and without independent application of mind, such reassessment proceedings are held to be invalid being not accordance with law. For the above proposition

Bithal Nath Gupta (HUF), New Delhi vs. ITO Ward - 31(4), New Delhi

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

ITA 5474/DEL/2019[2011-12]Status: DisposedITAT Delhi26 May 2022AY 2011-12

Bench: Shri Challa Nagendra Prasad, S.M.C. आ.अ.सं./ I.T.A No. 5711/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 R. C. Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaghr9088D A N D आ.अ.सं./ I.T.A No. 7437/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Brijesh Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2833G A N D आ.अ.सं./ I.T.A No. 5474/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Bithal Nath Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aaehb2834G A N D आ.अ.सं./ I.T.A No. 5475/Del/2019. िनधा"रणवष"/Assessment Year: 2011-12 Amit Gupta (Huf) Income Tax Officer, बनाम C/O. Raj Kumar & Associates,Cas. Ward : 31 (4), Vs. L-7A(Lgf) South Extension,Part-Ii New Delhi. New Delhi – 110 049. Pan No. Aahha3209G

For Appellant: Shri J. P. Sharma, A. RFor Respondent: Shri Om Parkash, Sr. D. R
Section 10(38)Section 147Section 151Section 68Section 69C

examined that that this script was also indulged in self-trading. 2.1. After examining of trade data of M/s DMC Education Ltd by the Investigation Wing, Mumbai, it was analyzed that the following beneficiary has also traded in the script of M/s DMC Education Ltd during ... mind. Referring to the following decisions, he submitted that where, the Assessing Officer has reopened the assessment on the basis of information from the Investigation Wing and without independent application of mind, such reassessment proceedings are held to be invalid being not accordance with law. For the above proposition