“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

Falguni Sanghvi, Mumbai vs. Asst CIT Cir 16(2), Mumbai

In the result, the assessee’s appeal for A

ITA 5847/MUM/2014[2004-05]Status: DisposedITAT Mumbai23 Sept 2016AY 2004-05

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainsmt. Falguni Sanghavi Acit, Circle 16(2) B-1607, Sankarseth Palace Mumbai Vs. Tardeo Road, Grant Road Mumbai 400007 Pan - Acaps6640J Appellant Respondent

For Appellant: Shri Rishabh ShahFor Respondent: Shri K. Rajneesh K. Arvind

Section 143(3)Section 147Section 147oSection 148Section 69C

providing accommodation entries to various persons to book bogus capital gains. The Assessing Officer (AO), on receipt of information in this regard from the Investigation Wing of the Income Tax Department that the assessee is one of the parties who sold the shares of M/s. Talent Infoway Ltd. through Shri ... form, etc. has been filed before the AO. Without making any enquiry, the AO has made the addition on the basis of information from Investigation Wing of I.T. Department based on statement of third party without providing the assessee opportunity to cross examine Shri Mukesh Choksi that his companies were

DCIT Cir 29(3), Mumbai vs. Sharad V. Shah, Mumbai

Appeal of the Revenue is dismissed

ITA 746/MUM/2015[2006-07]Status: DisposedITAT Mumbai21 Sept 2016AY 2006-07

Bench: Shri G.S. Pannu & Shri Amarjit Singh: (A.Y : 2006-07)

For Appellant: Dr. K. Shivaram & Sheetal JadhavFor Respondent: Shri A.K. Kardam

Section 143(3)Section 148Section 69C

ground that certain income had escaped assessment. As per the Assessing Officer, based on the information received from the Maharashtra Sales Tax authorities and Investigation Wing, assessee had made purchases from two concerns, namely, M/s. Manoj Trading Company – Rs.89,19,089/- and M/s. Sampak Steels – Rs.61,37,227/- which were

Ecofriendly Hotels India P.Ltd, Mumbai vs. Asst CIT 10, Mumbai

ITA 2333/MUM/2015[2006-07]Status: DisposedITAT Mumbai21 Sept 2016AY 2006-07

For Appellant: Shri Haridas BhattFor Respondent: Shri R.K. Sahu-DR

Section 143Section 143(1)Section 143(3)Section 147Section 148Section 254(1)

shares on the date of purchase.As per the AO the assessee did not furnish any of the above details.He had received information from the investigation wing that the assessee was one of the beneficiaries of bogus STCG entries from the MC group.The AO issued a notice to the assessee ... smoke-screen true state of affairs were hidden and they were successful in unearthing it.The AO after receiving the specific information from the investigation wing,directed the assessee to produce the proof the purchase of shares of two companies.It could not furnished any documents that could lead to establish fact

DCIT 10(3), Mumbai vs. Jakharia Fabrics P.Ltd, Mumbai

Appeal of the revenue is dismissed

ITA 6851/MUM/2014[2010-11]Status: DisposedITAT Mumbai21 Sept 2016AY 2010-11

Bench: Shri C.N. Prasad () & Shri Ashwani Taneja ()

Section 143(3)

same ii) has been passed by the A.O. without application of mind, on the basis of information received from investigation wing which in turn relied on the surveys conducted by the sales tax department.” 3. During the course of hearing, the Ld. Ld. Departmental Representative supported the order ... account. During the course of assessment proceedings, the Assessing Officer found that in view of the information received from the Investigation Wing of Income-tax Department, Mumbai, the assessee had obtained bogus purchase bills aggregating to Rs.1,14,92,970 from 8 parties, whose details have been given at paragraph

ITO15(2)(4), Mumbai vs. Mohan R. Kamat (HUF), Mumbai

In the result, the appeal of Revenue is dismissed

ITA 4548/MUM/2014[2005-06]Status: DisposedITAT Mumbai21 Sept 2016AY 2005-06

Bench: Shri R.C. Sharma(Am) & Shri Sandeep Gosain (Jm) Assessment Year: 2005-06

For Appellant: Shri. Randhir GuptaFor Respondent: None

perverse in fact by way of not considering the facts mentioned in the assessment order as well as the information provided by the Investigation wing ?.” 3. Before us, at the outset, ld. Authorized Representative submitted that the present appeal of the Revenue needs to be dismissed on account

ITO, New Delhi vs. M/S. Goldy Traders Pvt. Ltd., New Delhi

ITA 3136/DEL/2013[2004-05]Status: DisposedITAT Delhi20 Sept 2016AY 2004-05

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. Amrit Lal, Sr. DRFor Respondent: S/Sh. Ved Jain & Ashish Goel, C.As. &

Section 143(1)Section 147Section 148Section 68

despite the fact that the reassessment proceedings were initiated on the basis of credible and tangible information received from the investigation wing of the Department. In similar circumstance, the Hon'ble Delhi High Court in various recent judicial pronouncements has upheld the validity of initiation of reassessment proceedings ... basis of information received from investigation wing regarding accommodation entry providers. 2 ITA No.3136/Del./2013 2. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in not appreciating that there is no requirement under the law that reasons for reopening should be provided

M/S. M.G. Contractors Pvt. Ltd., New Delhi vs. DCIT, Faridabad

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

ITA 7034/DEL/2014[2006-07]Status: DisposedITAT Delhi19 Sept 2016AY 2006-07

Bench: Shri I.C. Sudhir & Shri Prashant Maharishi

For Appellant: Sh. P.C. Yadav, AdvFor Respondent: Sh. P. DAM Kanunjna, Sr. DR

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

reproduced in the assessment order. It is submitted that this letter was filed much before the issuance of any summon, notice, questionnaire from the investigation wing of the revenue, whose functions are to scrutinize the seized material and preparation of Appraisal Report. It is has been mentioned in this letter ... hands of one of the director namely K.C.Mittal. 3. It is submitted that thereafter the AO after receiving the material from the investigating wing issued the notice of 153A on 22.02.2013. The assessee, in response to the notices of 153A, has filed its ROI along with year wise bifurcation

Gits Food Products P. Ltd, Mumbai vs. DCIT Cir 10(1), Mumbai

In the result, appeal filed by assessee is allowed

ITA 6983/MUM/2014[2010-11]Status: DisposedITAT Mumbai16 Sept 2016AY 2010-11

Bench: Shri B.R.Baskaran & Shri Pawan Singh

For Appellant: Shri Rajesh Shah (AR)For Respondent: Shri Maurya Pratap (DR)

perused the material available on record. We have seen that the AO while framing assessment that as per the information received from the Investigation Wing, the party (supplier of material) involved in providing accommodation entries. As the parties involved is providing accommodation entry has entered into a bogus transaction with

Sudhabai C. Jain, Hubli vs. ITO, Hubli

In the result, appeals filed by the assessee are allowed

ITA 295/BANG/2016[2007-08]Status: DisposedITAT Bangalore16 Sept 2016AY 2007-08

Bench: Smt. Asha Vijayaraghavanita No.295/Bang/2016 Ay 2007-08 Ita No.296 /Bang/2016 Ay 2008-09 Smt. Sudhabai C.Jain No. 62, 3Rd Cross, Arihant Nagar Keshwapur, Hubli . Appellant Vs. The Income Tax Officer Ward-3(2) Hubli . Respondent

For Appellant: Shri HN Khincha, C.AFor Respondent: Shri DK Jha, Addl. CIT

Section 10(34)Section 10(38)Section 132Section 143(1)Section 148Section 80C

Income-tax Act, 1961, in the case of Shri Mukesh M Chokshi, Director of Mahasagar securities, Mumbai and other companies conducted by investigation wing of The Income Tax Department, Mumbai, it was found that he was running a network on bank accounts in the names of various companies. These bank ... Chokshi and his various companies were extracted from the books of account of Shri Mukesh M Chokshi in two compact disc by the investigation wing. The evidence gathered on the bogus nature of transactions was confronted with Shri Mukesh M Chokshi and during the sworn statement before the authorized Officer

Munni Devi, Rewari vs. ITO, Rewari

In the result, the Assessee’s Appeal stands allowed

ITA 3534/DEL/2014[2007-08]Status: DisposedITAT Delhi15 Sept 2016AY 2007-08

Bench: Shri H.S. Sidhuassessment Year: 2007-08 Munni Devi Vs. Ito, Ward-2 W/O Sh. Mohar Singh, Rewari Vill. & Po Asia-Ki-Gorawas, Rewari (Pan: Bivpd3594G) (Appellant) (Respondent)

For Appellant: Sh. Gautam Jain, Adv. & Sh. Piyush Kr. Kamal, AdvFor Respondent: Shri Amrit Lal, Sr. DR

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

applicable in the facts of the present case because in the said case not only the accommodation entry were found by the investigation wing but the modus operandi was also detected and therefore it was found that the AO was having the sufficient 16 material and information to form

P.T. Engineers Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the Assessee’s appeal are allowed

ITA 87/DEL/2015[2009-10]Status: DisposedITAT Delhi14 Sept 2016AY 2009-10

Bench: Shri H.S. Sidhu

For Appellant: Sh. Lalitha Krishnamurthy, CA &For Respondent: Sh. AMRIT LAL, SR. DR

Section 147Section 148Section 68

during the period of FY 2005- 06 relevant to the AY 2006-07. The entries were received from established entry operators identified by the Investigation Wing on the basis of search / survey conducted on Sh. SK Jain, CA. The case was reopened ... independent conclusion that there was escapement of income. It was further stated that the case was reopened only on the basis of Investigation Wing information which suffers with serious debility and lacks definiteness, without describing the basic aspects of alleged transaction and in the absence of the same, whole action

P.T. Engineers Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, both the Assessee’s appeal are allowed

ITA 86/DEL/2015[2006-07]Status: DisposedITAT Delhi14 Sept 2016AY 2006-07

Bench: Shri H.S. Sidhu

For Appellant: Sh. Lalitha Krishnamurthy, CA &For Respondent: Sh. AMRIT LAL, SR. DR

Section 147Section 148Section 68

M/S. N.S. Creation (P) Ltd., Delhi vs. DCIT, New Delhi

In the result, Assessee’s appeal is allowed

ITA 1824/DEL/2015[2008-09]Status: DisposedITAT Delhi14 Sept 2016AY 2008-09

Bench: Shri H.S. Sidhuassessment Year: 2008-09

For Appellant: Sh. AMIT GOEL, FCA & MR. SAURABH GOEL, CAFor Respondent: Sh. AMRIT LAL, SR. DR

Section 143(1)Section 143(3)Section 147Section 148Section 151Section 68

independent conclusion that there was escapement of income. It was further stated that the case was reopened only on the basis of Investigation Wing information which suffers with serious debility and lacks definiteness, without describing the basic aspects of alleged transaction and in the absence of the same, whole action ... entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account

I.T.O WD - 54(1), Kolkata vs. Bijaya Kumar Sahoo, Kolkata

In the result, the appeal of the revenue as well as the cross objection of the assessee are dismissed

ITA 1990/KOL/2013[2009-10]Status: DisposedITAT Kolkata09 Sept 2016AY 2009-10

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

Section 143(2)Section 143(3)Section 80Section 80J

erred in disbelieving the business activity and he relied on the reports of Inspector to his charge but rejected the reports submitted by the Investigation Wing , Bhubaneshwar, Fresh affidavit by the Sarpanch and his father as well as Reports of Assistant Agriculture Officer, Baramba Block,Cuttack, Odissa where ... have also gone through the fact that the assessing officer in her remand report mentions that the Commission Reports of the investigation Wing, Bhubaneswar found 3 small pits of such Bio-fertilizers, i.e. too after 6-7 months after the closure of the said business. She has also calculated

Shine Star Impex P.Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

ITA 4350/MUM/2015[2009-10]Status: DisposedITAT Mumbai09 Sept 2016AY 2009-10

Bench: Shri R. C. Sharma & Shri Sandeep Gosainआमकय अऩीर सं./I.T.A. Nos.4347 & 4348/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Sunshine Import & Exports Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 1023 K (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : & आमकय अऩीर सं./I.T.A. Nos.4349 & 4350/Mum/2015 (नििाारण वषा / Assessment Years: 2008-09 & 2009-10) Shine Star Impex Pvt. Ltd. Dy. Cit, Central Circle (42), बिाम/ 28/3, Shree Ramniwas, 1St Bhatwadi, Mumbai Vs. Opera House, Mumbai-400 004 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. Aalcs 3998 R (अऩीराथी /Appellant) (प्रत्मथी / Respondent) : अऩीराथी की ओय से / Appellant By : Shri Vimal Punmiya – Written Submission प्रत्मथी की ओय से/Respondent By : Shri Uday Bhaskar Jakke सुनवाई की तायीख / : 19.7.2016 Date Of Hearing घोषणा की तायीख / : .9.2016 Date Of Pronouncement आदेश / O R D E R Per R. C. Sharma, A. M.:

For Appellant: Shri Vimal Punmiya – Written submissionFor Respondent: Shri Uday Bhaskar Jakke

Section 131Section 133ASection 143(3)

133A of the Income Tax Act, 1961 on the premises of the assessee company in the month of December, 2008 by the Investigation Wing of Mumbai. A statement of Mr. Paras Jain who was the main promoter and director of the company, was recorded wherein he has categorically stated ... action u/s. 133A of the Income Tax Act, 1961 on the premises of the assessee company in the month of December, 2008 by the Investigation Wing of Mumbai. A statement of Mr. Paras Jain who was the main promoter and director of the company was recorded wherein he has categorically

Shine Star Impex P.Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

ITA 4349/MUM/2015[2008-09]Status: DisposedITAT Mumbai09 Sept 2016AY 2008-09

For Appellant: Shri Vimal Punmiya – Written submissionFor Respondent: Shri Uday Bhaskar Jakke

Section 131Section 133ASection 143(3)

Sunshine Import & Exports P. Ltd, Mumbai vs. DCIT Cen Cir (42), Mumbai

In the result, the appeals of the assessee’s are allowed in part

ITA 4348/MUM/2015[2009-10]Status: DisposedITAT Mumbai09 Sept 2016AY 2009-10

For Appellant: Shri Vimal Punmiya – Written submissionFor Respondent: Shri Uday Bhaskar Jakke

Section 131Section 133ASection 143(3)

Prem R. Toshniwal, Mumbai vs. ACIT 12(3), Mumbai

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

ITA 482/MUM/2014[2004-05]Status: DisposedITAT Mumbai09 Sept 2016AY 2004-05

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.482/Mum/2014 ("नधा"रण वष" / Assessment Year : 2004-05) Smt. Prem R. Toshniwal, Asstt. Commissioner Of बनाम/ Gopal Bhavan, 5 Th Floor, Income Tax – 12(3), V. 199, Princess Street, Aayakar Bhavan, Mumbai – 400 002. Mumbai 400 020. "थायी लेखा सं./Pan : Aacpt1439J .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Naveen Gupta

Section 132Section 143(1)Section 143(3)Section 148Section 68

Securities Pvt. Ltd. by the Revenue u/s 132 of the Act on 25th November, 2009 and on the basis of information received from the Investigation Wing of the Revenue, the case of the assessee was reopened and notice u/s 148 of the Act was served upon the assessee on 21st ... ledger accounts of the various clients showing details of purchase and sale of shares. A similar copy of ledger account , given by the investigation wing is also on the records. The copy of the ledger accounts extract in the name of assessee was reconciled with the bills of the sale

M/S. Quality Enabled Remote Solutions (P) Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 929/DEL/2015[2005-06]Status: DisposedITAT Delhi08 Sept 2016AY 2005-06

Bench: Shri J. Sudhakar Reddyassessment Year : 2005-06

For Appellant: Dr. Rakesh Gupta &For Respondent: Shri Anil Sharma, Sr. DR

Section 132Section 147Section 148Section 234BSection 68

conducted at the office premises of Shri Tarun Goyal, Charted Accountant at 13/34, WEA, Arya Samaj Road, Karol 8agh, New Delhi by the Investigation Wing of Delhi on 15.09.2008. During the course of search operation, it was established that Shri Tarun Goyal has floated about. 90 companies for the purpose ... been received through Addl. CIT Range-14, New Delhi's letter dated 28.04,2009 As per the information received from the Investigation wing, the assessee company has introduced its own undisclosed income in the qrab of share application money/bogus transaction/gifts through M/s. Geefcee Finance Ltd. As per information, the assessee

Rahul Bhandari, Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2637/DEL/2015[2006-07]Status: DisposedITAT Delhi08 Sept 2016AY 2006-07

Bench: Shri J. Sudhakar Reddyassessment Year : 2006-07

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri Anil Sharma, Sr. DR

Section 147Section 148

case Signature Hotels Pvt. Ltd. vs. ITO 328 ITR 51 (Del) 3 wherein it was held that notice issued based on a report from Investigation Wing is invalid where the AO does not examine the evidence. The Hon’ble jurisdictional High Court in the case Principal Commissioner of Income ... entries, which information was given to him by the Directorate of Investigation, the AO stated: “I have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has, introduced its own unaccounted money in its bank account