“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

M/S Shree Jewellers, Chandigarh vs. Pr.CIT-1, Chandigarh

In the result, the appeal of the assessee is dismissed

ITA 293/CHANDI/2017[2012-13]Status: PendingITAT Chandigarh09 May 2018AY 2012-13

Bench: Ms. Diva Singh & Ms. Annapurna Guptaassessment Year: 2012-13 Shree Jewellers, Vs. The Pr.Cit-1, Sco-5, Sector 19-D, Chandigarh. Chandigarh. Pan No. : Aaxfs8977P (Appellant) (Respondent)

For Appellant: Shri Tej Mohan Singh, Advocate (Proxy Counsel)For Respondent: Dr. Gulshan Raj, CIT-DR

Section 132

could not prepare the Paper Book due to search under Section 132 of Income Tax Act has been conducted at our office by Investigation Wing, Patiala in connection with our client.” 3.3. The record shows that the Co-ordinate Benches over a period of time have been repeatedly giving time

Vijaykumar Srinivasan, Mumbai vs. Income Tax Officer Ward-3(4), Thane

In the result, the appeal Assessee is allowed

ITA 7363/MUM/2017[2007-08]Status: DisposedITAT Mumbai09 May 2018AY 2007-08

Bench: Sri Mahavir Singh

For Appellant: M. Subramanian, ARFor Respondent: P.R. Chauhan, DR

Section 132Section 143(3)Section 147Section 271(1)

circumstances of the case. Before me, the learned Counsel for the assessee filed copy of Tribunal’s order exactly on similar facts, wherein the investigation wing of the department shared information with the AO that on money paid in cash on purchase of property/ office/ flat in the said project

Shwet Developers Private Limited, Mumbai vs. Income Tax Officer Circle-8(2)(1), Mumbai

In the result, the appeal Assessee is allowed for statistical purposes

ITA 5461/MUM/2017[2012-13]Status: DisposedITAT Mumbai09 May 2018AY 2012-13

Bench: Sri Mahavir Singh

For Appellant: NoneFor Respondent: P.R. Chauhan, DR

Section 143(3)Section 68

funds, Rs 25 lacs is used for repayment to one Ms. Shashikala Mishra who has cancelled her booking of flat. It is submitted that Investigation Wing has recorded the statement of Mr. Pranjal I3apna, Director of M/s Fastline Multitrade Pvt Ltd on 1/10/2013. It is further submitted that Mr. I3apna ... allowed to cross examined despite specific request and further Mr. Bapna has submitted the Sworn Affidavit retracting is statement 4 given before investigation Wing which was submitted during the course of assessment proceedings. It is submitted that at the time of transaction, Mr. Yatin Bagrecha and Mr. Dinesh Hiren were

M/S Akshay Shakti Shiksha Avam Samaj Kalyan Samiti, Bhopal vs. The ACIT 1(1), Bhopal

In the result, the assessee’s appeals for assessment

ITA 520/IND/2016[2010-11]Status: DisposedITAT Indore07 May 2018AY 2010-11

Bench: Shri Kul Bharat, Hon’Ble & Shri Manish Borad, Hon’Bleita Nos. 518 To 520/Ind/2016 A.Ys. 2007-08, 2009-10 & 2010-11

Section 132Section 143(2)Section 153ASection 271(1)(c)Section 271A

surrender of undisclosed income was made during the course of the search. - After the seizure and analysis of seized documents by the Investigation Wing, a declaration was made by Akshay Shakti Shiksha ITA Nos.518,519 & 520/Ind/2016 declaring an undisclosed income of Rs. 74,83,000 through a letter filed before

M/S Akshay Shakti Shiksha Avam Samaj Kalyan Samiti, Bhopal vs. The ACIT 1(1), Bhopal

In the result, the assessee’s appeals for assessment

ITA 519/IND/2016[2009-10]Status: DisposedITAT Indore07 May 2018AY 2009-10

Bench: Shri Kul Bharat, Hon’Ble & Shri Manish Borad, Hon’Bleita Nos. 518 To 520/Ind/2016 A.Ys. 2007-08, 2009-10 & 2010-11

Section 132Section 143(2)Section 153ASection 271(1)(c)Section 271A

M/S Akshay Shakti Shiksha Avam Samaj Kalyan Samiti, Bhopal vs. The ACIT 1(1), Bhopal

In the result, the assessee’s appeals for assessment

ITA 518/IND/2016[2007-08]Status: DisposedITAT Indore07 May 2018AY 2007-08

Bench: Shri Kul Bharat, Hon’Ble & Shri Manish Borad, Hon’Bleita Nos. 518 To 520/Ind/2016 A.Ys. 2007-08, 2009-10 & 2010-11

Section 132Section 143(2)Section 153ASection 271(1)(c)Section 271A

Pondicherry Agro Foods Pvt. Ltd., Chennai vs. DCIT Non Corporate Circle 5(2), Chennai

In the result, the assessee’s appeal is partly allowed for statistical

ITA 3054/CHNY/2017[2013-14]Status: DisposedITAT Chennai07 May 2018AY 2013-14

Bench: Shri George Mathan & Shri S. Jayaraman

For Appellant: Shri. R. Vijayaraghavan, AdvocateFor Respondent: Shri. N. Madhavan, Addl. CIT

Section 143(3)Section 31(5)(ii)Section 35(1)(ii)

products. The assessee’s assessment for assessment year 2013-14 was completed u/s. 143(3) on 10.02.2016. Thereafter on the investigation done by the Investigation Wing in Kolkata, the Assessing Officer received information that accommodation entries were made in the grab of donation of scientific research by Herbicure Health ... CBDT vide its order 15.09.2016 has withdrawn its approval granted u/s 35(1)(ii) on the basis of findings of the Survey conducted by Investigation Wing, Calcutta. Therefore, the contentions raised by the Id. AR are nothing but empty recitals without substance. The contemporaneous evidence clearly prove that appellant

Mani Jewel, Mumbai vs. Income Tax Officer, Ward 24(2)(1), Mumbai

In the result, the appeal Assessee is allowed for statistical purposes

ITA 721/MUM/2018[2007-08]Status: DisposedITAT Mumbai07 May 2018AY 2007-08

Bench: Sri Mahavir Singh

For Appellant: Narendra K Patel, ARFor Respondent: V Vidhyadhar, DR

Section 143(3)Section 154

thus additions be deleted.” 3. The facts of the case are that a search and seizure action was corned out by the Investigation wing Mumbai in the Gautam Jain & others group of cases on 03.10.2013, which resulted in collection of evidences and other findings, which conclusively proved that the said ... Directors/ proprietors of such paper companies/concerns admitted the entire nature of bogus transactions in their statements recorded on oath. The investigations made by the investigation wing revealed that actual 3 importers of rough diamonds import part of their diamond requirement through benami entities operated by Shri Gautam Jain & others, which

Manoj Kumar Jain, Agra vs. ITO-1(2), Agra

In the result, the appeal is allowed

ITA 277/AGR/2017[2002-03]Status: DisposedITAT Agra03 May 2018AY 2002-03

Bench: : Shri A.D. Jainassessment Year: 2002-03

Section 147

observing (page-8 of the order under appeal) that "the said proceedings have been initiated undisputedly on the receipt of information from the Investigation Wing, Agra and this fact has been 4 mentioned in the impugned order. Therefore, this objection, too, in my opinion, is not acceptable". It has been ... have not been specified and that the reasons were recorded without any application of mind, merely on the basis of information received from the Investigation Wing of the Department, i.e., just on borrowed satisfaction. Reliance has been place on "Principal 5 CIT vs. Meenakshi Overseas

Ashok K. Shah, Mumbai vs. Income Tax Officer 31(1)(2), Mumbai

The appeal of the assessee is partly allowed

ITA 565/MUM/2018[2009-10]Status: DisposedITAT Mumbai02 May 2018AY 2009-10

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2009-10 Asok K. Shah, Income Tax Officer-31(1)(2), C-25, Sai Baba Enclave, Mumbai, बनाम/ S.V.Road, Vs. Goregaon West, Mumbai-400062 ("नधा"रती /Assessee) (राज"व /Revenue) P.A. No.Akeps3501N

return filed on 01/09/2009, which was processed u/s 143(1) of the Act in the system. Subsequently, an information was received from the investigation wing that the assessee is the beneficiary of billers from Hawala dealers listed at the website of the Sales Tax Department. As per the information

Rajkamal Metal Corporation, Mumbai vs. Income Tax Officer Ward 19(3)(1), Mumbai

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

ITA 1024/MUM/2018[2010-11]Status: DisposedITAT Mumbai27 Apr 2018AY 2010-11

Bench: Shri Saktijit Dey & Shri Rajesh Kumarassessment Year: 2010-11

For Appellant: Shri Vimal Punmiya, A.RFor Respondent: Shri Ram Tiwari, D.R

Section 143Section 145(3)Section 147Section 234ASection 271(1)Section 271(1)(c)Section 3

reassessment can be made just to make an enquiry or verification. b) Reassessment proceeding cannot be initiate merely on the information received from investigation wing. c) Reassessment proceeding cannot be initiated when the LD. CIT(A) have reason to suspect and not reason to believe. 2 M/s. Rajkamal Metal Corporation

DCIT Cen Cir 1(3), Mumbai vs. Fancy Diamonds India P.Ltd, Mumbai

ITA 4758/MUM/2015[2012-13]Status: DisposedITAT Mumbai27 Apr 2018AY 2012-13

Bench: Shri Shamim Yahya & Shri Pawan Singhdcit, Central Circle-(1) (3) M/S Fancy Diamonds India Pvt. Ltd. Room No. 905, 9Th Floor, 111, Prasad Chambers, Old Cgo Building, M.K. Road, Vs. Opera House, Church Gate, Mumbai-20. Mumbai-400004 Pan:Aaacf3325J (Appellant) (Respondent) Revenue By : Ms. Pooja Swaroop (Dr) Assessee By : Shri Reepal Tralshawala (Ar) Date Of Hearing : 20.03.2018 Date Of Pronouncement : 27.04.2018 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. This Appeal By Revenue Under Section 253 Of Income Tax Act (‘The Act’) Is Directed Against The Order Of Ld. Commissioner Of Income-Tax (Appeals)-47

For Appellant: Shri Reepal Tralshawala (AR)For Respondent: Ms. Pooja Swaroop (DR)

Section 131Section 132Section 143(3)Section 153CSection 253Section 254(1)Section 69

Apurva Shah, who were marketing representatives of the assessee-company, jewellery of gold of 599.6 grams and diamond at 916.45 carets was seized by Investigation Wing. In the follow up enquiries under section 131(1A) by Investigation Wing at Mumbai at the premises of the assessee ... Kochi by Investigation Officer in the late night. This fact was categorically informed to the official at Kochi a well as to the investigation wing at Bombay, that some bills of sales and purchase were not accounted. The stock register showed the different weight of diamonds. However, the authorization memo

A.Jesu Rajendran, Chennai vs. ITO Business Ward Xiii(2), Chennai

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

ITA 2817/CHNY/2017[2005-06]Status: DisposedITAT Chennai26 Apr 2018AY 2005-06

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamony

For Appellant: Shri K.G. Raghunath, AdvocateFor Respondent: Shri AR.V. Sreenivasan, JCIT

consideration of ₹79,21,500/- on 12.10.2004 from M/s Alfa Home Makers Pvt. Ltd. According to the Ld. counsel, the assessee explained before the investigation wing of the Department the source for making such investment. According to the Ld. counsel, the assessee in fact purchased the property from M/s Alfa ... same into housing site. The land was purchased for real estate business. The Ld. D.R. further submitted that the assessee stated before the investigation wing of the Department that he received ₹73 lakhs as interest-free loan from one Shri Sathish. This amount of ₹73 lakhs along with ₹6 lakhs

Sunita Devi Chordia, Chennai vs. ITO Non Corporate Ward 6(3), Chennai

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

ITA 2805/CHNY/2017[2009-10]Status: DisposedITAT Chennai26 Apr 2018AY 2009-10

Bench: Shri N.R.S. Ganesanआयकर अपील सं./Ita No.2805/Chny/2017 "नधा"रण वष" / Assessment Year : 2009-10

For Appellant: Shri M. Abhishek, CAFor Respondent: Shri B. Sahadevan, JCIT

Section 143(1)Section 147

Officer processed the return under Section 143(1) of the Act and issued intimation. Subsequently, on the basis of the survey conducted by the Investigation Wing of the Department, it was found that by modifying the client code, the assessee was claiming bogus loss in the Profit & Loss account. Therefore

Deputy Commissioner of Income-Tax vs. Shri Shivaji Bhagwanrao Jadhav, Pune

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

ITA 681/PUN/2015[2009-10]Status: DisposedITAT Pune25 Apr 2018AY 2009-10

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं. / Ita Nos. 680 To 682/Pun/2015 िनधा"रण वष" / Assessment Years : 2008-09 To 2010-11

For Appellant: Shri Kishor Phadke & Shri Vikas AgarwalFor Respondent: Shri Achal Sharma

Section 153A

Revenue relied on various decisions to suggest that the AO merely made addition stating but for the disclosure of Rs.54 lakhs the investigation wing abruptly stopped the proceedings on the bonafide belief. With the retraction in mind, there is no sufficient time available to the AO for investigating into

Assistant Commissioner of Income-Tax vs. S M Auto Engineering Pvt. Ltd., Pune

In the result, the appeal of Revenue is dismissed

ITA 656/PUN/2015[2006-07]Status: DisposedITAT Pune25 Apr 2018AY 2006-07

Bench: Shri Anil Chaturvedi, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri Kishore PhadkeFor Respondent: Shri Achal Sharma

Section 132Section 132(4)Section 143(3)Section 148Section 153A

being a quasi judicial authority is expected to arrive at a subjective satisfaction independently on an objective criteria. While the report of the Investigation Wing might constitute the material on the basis of which he forms the reasons to believe the process of arriving at such satisfaction cannot

Shivaji Bhagwanrao Jadhav, Pune vs. Deputy Commissioner of Income-Tax

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

ITA 699/PUN/2015[2010-11]Status: DisposedITAT Pune25 Apr 2018AY 2010-11

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं. / Ita Nos. 680 To 682/Pun/2015 िनधा"रण वष" / Assessment Years : 2008-09 To 2010-11

For Appellant: Shri Kishor Phadke & Shri Vikas AgarwalFor Respondent: Shri Achal Sharma

Section 153A

Deputy Commissioner of Income-Tax vs. Shri Shivaji Bhagwanrao Jadhav, Pune

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

ITA 682/PUN/2015[2010-11]Status: DisposedITAT Pune25 Apr 2018AY 2010-11

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं. / Ita Nos. 680 To 682/Pun/2015 िनधा"रण वष" / Assessment Years : 2008-09 To 2010-11

For Appellant: Shri Kishor Phadke & Shri Vikas AgarwalFor Respondent: Shri Achal Sharma

Section 153A

National Metal Industries, Mumbai vs. Income Tax Officer 18(2)(4), Mumbai

In the result, both the appeals are dismissed

ITA 6668/MUM/2017[2009-10]Status: DisposedITAT Mumbai25 Apr 2018AY 2009-10

Bench: S/Shri R.C. Sharma (Am) & Ravish Sood (Jm) I.T.A. No. 6668/Mum/2017 (Assessment Year 2009-10) M/S. National Metal Industries Ito 18(2)(4) Shop No. 11, 284 Vs. Mumbai. Chandra Mahal, Thakurdwar Corner, Jss Road, Girgaon Mumbai-400 002. Pan Aaafn4092R (Appellant) (Respondent)

Section 133(6)Section 142(1)Section 143(3)Section 145(3)Section 147Section 148

trader and commission agent in S.F. copper wire and all other non-ferrous metal. On getting information from the Sales Tax Department and its investigation wing, the Assessing Officer reopened the assessment and asked the assessee to prove genuineness of purchases. The Assessing Officer also issued notices

Purnapurshottam Exports, Mumbai vs. ITO WD 32(2)(5), Mumbai

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

ITA 1696/MUM/2017[2007-08]Status: DisposedITAT Mumbai25 Apr 2018AY 2007-08

Bench: Shri C.N Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.1696/Mum/2017 (नििाारण वर्ा / Assessment Year : 2007-08) बिाम/ M/S. Purnapurshottam Ito Ward -32(2)(5), Exports, Gala No. 6A, C-11, 3R D Floor, Ground Floor, Hi-Tex Pratyakshakar Bhavan, V. Industrial Compound, Bkc, Bandra(E), Behind Petro Pump, Mumbai-400051 S.V. Road, Dahisar (E), Mumbai 400068 स्थायी ऱेखा सं./ Pan : Aaefp8085E (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Ms. Mrugakshi K. JoshiFor Respondent: Shri Rajat Mittal (DR)

Section 143(3)Section 147Section 69C

group cases . On the basis of statement recorded of Shri Rajendra Jain and various other persons and also after making detailed enquiry by the investigation wing , it emerged that Shri. Rajendra Jain group was indulging in providing accommodation entries like bogus purchases, sales, unsecured loans , share capital etc. . The investigation ... appellant is a firm engaged in the business of import and export of diamonds and semiprecious stones. The AO has received information from the Investigation Wing, Mumbai that the appellant had obtained accommodation entries of Rs 1,57,77,971/- through certain group concerns of Rajendra Jain Group of cases