“investigation wing”

ReassessmentSection 147Section 14712,583 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

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

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.

Judgments citing investigation wing

Sunita Saini, Haryana vs. Income Tax Officer, Ward 1(4), Faridabad, Haryana

In the result, appeal of the Assessee is allowed

ITA 1877/DEL/2024[2016-17]Status: DisposedITAT Delhi27 Oct 2025AY 2016-17

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A No.1877/Del/2024 िनधा"रणवष"/Assessment Year:2016-17 बनाम Sunita Saini, Income Tax Officer, House No.743P, Sector-38, Vs. Ward 1(4), Gurugram, Haryana. Faridabad. Pan No.Awmps2317Q अपीलाथ" Appellant ""यथ"/Respondent

Section 10(38)Section 147Section 151Section 263

checked as per assessment order and addition was made earlier also. 2. Purchase sales and trading results are accepted by VAT Department. 3. Investigation wing report is on suspicious basis that payment was made for more than 20,000. 13 SUNITA SAINI 4. Even in case of violation

Anjali Gupta, Gurgaon vs. ITO Ward -1(2), Gurgaon

In the result, appeal of the assessee is allowed

ITA 3605/DEL/2019[2015-16]Status: DisposedITAT Delhi27 Oct 2025AY 2015-16

Bench: Shri Anubhav Sharma & Shri Amitabh Shukla, Accountnat Member [Assessment Year: 2015-16] Ms. Anjali Gupta, Ito, Ward-1(2), A-84, Summit, Dlf City-5, Gurgaon, Sector-56, Gurgaon, Vs Haryana Pan-Aaipg5132F Appellant Respondent Assessee By Shri Vijay Kumar Singla, Ca Revenue By Ms. Harpreet Kaur Hansra, Sr. Dr Date Of Hearing 28.07.2025 Date Of Pronouncement 27.10.2025

Section 10(38)Section 115BSection 143(3)Section 68

confirming the above addition despite the fact that the addition is made by the AO relying on the report of the investigation wing without application of his own mind. 9. (i) On the facts and circumstances of the case the learned CIT(A) has erred both on facts ... been noted by the ld. AO based upon the enquiries conducted during search proceedings in the case of impugned company, inquiries by the Investigation Wing of Kolkata, as well as noting the weak financials of the company, concluded that the impugned company is a penny stock company and proceeded

Deputy Commissioner of Income Tax, Jalgaon vs. Taradevi Ratanlal Bafna, Jalgaon

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

ITA 499/PUN/2025[2018-19]Status: DisposedITAT Pune24 Oct 2025AY 2018-19

Bench: Shri R. K. Panda & Ms. Astha Chandraassessment Year : 2018-19

For Appellant: S/Shri Suchek Anchaliya and Tushar NagoriFor Respondent: Shri Amit Bobde, CIT

Section 10(38)Section 139(1)Section 143(3)Section 147Section 148Section 148ASection 68Section 69C

disputed the facts and evidences submitted by the appellant at the assessment stage. He has simply relied on the report of investigation wing and has not carried out any further verification on the basis of documents furnished by the appellant. Hon'ble Supreme Court in the case of Omar Salav ... NFAC, New Delhi is not justified as the addition made by the then AO is based on specific information received from Investigation Wing and thorough inquiry was made by the then AO before making the addition. 2. On the facts and in the circumstances of the case

Kemox Corporation, Bhiwandi vs. DCIT-CC-3, Thane

ITA 221/MUM/2025[2015-16]Status: DisposedITAT Mumbai24 Oct 2025AY 2015-16

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Ms. Simran Dhawan, Ld. A.RFor Respondent: Shri Ritesh Misra, Ld. D.R

Section 131Section 131(1)(d)Section 142Section 250Section 68

order to verify the genuineness of the aforesaid unsecured loans, issued a commission u/s 131(1)(d) of the Act to the Kolkata Investigation Wing, who sent the report through ADIT (Inv.) 2(4) Kolkata, according to which two companies namely M/s. North East Trade Link Pvt. Ltd. (in short ... good self has proposed to treat the above loans as unexplained Cash Credit u/s.68 of the Act based on the report given by ADIT, Investigation wing, Kolkata as under: a) Reg. M/s. North East Trade Link Pvt Ltd and M/s Well Spun Tie-up Pvt. Ltd.: Summons u/s.131 were issued

Agrawala Finserve Pvt Ltd, Delhi vs. ITO Ward-1(4), Delhi

In the result, appeal of the assessee is allowed

ITA 3503/DEL/2025[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

Bench: SHRI VIKAS AWASTHY (Judicial Member)

For Appellant: S/Shri Mukesh Kumar Jain & Atul DhamaFor Respondent: Ms. Sudha Gupta, Sr.DR

Section 133(6)Section 143(3)Section 147Section 148

inspection and the rest of the records are being fetched. The AO reopened the assessment merely on the basis of information received by the Investigation Wing. Such reopening or assessment where the ‘reasons to believe’ are not that of Assessing officer, the reason for reopening are unsustainable. The ld. Counsel ... department vehemently defended the reassessment proceeding and assessment order. The ld. DR submitted that after completion of assessment, new information was discovered by Investigation Wing. The said information was forwarded to the AO. Thereafter, the Assessing Officer carried out his separate independent investigation and came to the conclusion that

Sri Prem Properties Private Limited, Gurgaon vs. ACIT, Circle-24(1), New Delhi, Delhi

In the result, appeal filed by the assessee is allowed

ITA 957/DEL/2024[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.Sri Prem Properties Private Limited, Vs. Acit, Circle 24 (1), A – 99, Bajghera Chowk, Delhi. New Palam Vihar, Gurgaon – 122 017 (Haryana). (Pan :Aaacs2554E) (Appellant) (Respondent) Assessee By : Dr. Rakesh Gupta, Advocate Shri Skasham Agarwal, Ca Shri Deepesh Garg, Advocate Revenue By : Ms. Kirti Sankratyayan, Cit Dr Date Of Hearing : 01.09.2025 Date Of Order : 24.10.2025 Order Per S. Rifaur Rahman: 1. This Appeal Preferred By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income-Tax (Appeals)-23, New Delhi [For Short ‘Ld. Cit (A)]Dated 04.01.2024 For Assessment Year 2012-13. 2. Brief Facts Of The Case Are, Assessee Filed Its Original Return Of Income On 30.09.2012 Declaring An Income Of Rs.2,15,340/-. The Case Of The Assessee Was Selected For Scrutiny For The Year Under Consideration.

For Appellant: Dr. Rakesh Gupta, AdvocateFor Respondent: Ms. Kirti Sankratyayan, CIT DR

Section 132Section 147Section 148

assessee-company for the year under consideration. He further submitted that the reason is based on borrowed satisfaction taken from the satisfaction of Investigation wing without application of mind. He also brought to our notice pages 108 to 110 which are the written submissions made before ... observe that the reassessment was completed u/s 147 of the Act in the case of the assessee based on the information received from Investigation Wing. As per the reasons recorded by the AO at page 1 of the assessment order, we observe that a search action u/s 132 was conducted

Surinder Kumar Chhabra, Gurgaon vs. Circle 4(1), Gurgaon

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

ITA 4776/DEL/2024[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

Bench: Shri Challa Nagendra Prasad & Shri Brajesh Kumar Singh

Section 143Section 147Section 148Section 69C

return of income. Accordingly, the AO was correct in issuing notices under section 148 of the Act on the basis of information received from investigation wing. It was clearly established that the appellant has taken accommodation entry from Jai Shiv Enterprises which were not revealed or disclosed by the appellant ... Shiv Enterprises along with the ITR, Balance Sheet of the above entity for the year under consideration. 5.3 The information so obtained from the investigation wing were further analyzed by the AO to conducted field enquiry by deputing Income Tax Inspector and therefore, informed the reasons to believe

Assistant Commissioner of Income Tax, Central Circle-2, Madurai vs. Transworld Garnet India Pvt Ltd., Chennai

ITA 1877/CHNY/2025[2016-17]Status: DisposedITAT Chennai23 Oct 2025AY 2016-17

For Appellant: Shri. R.Venkata Raman, C.AFor Respondent: Shri. Shiva Srinivas, C.I.T

Section 132Section 132(4)Section 142(1)Section 143(2)Section 153ASection 40A(3)

registers and payment vouchers. 61. It was further brought to the notice of the Id.CIT(A) that during the course of search proceedings, the Investigation Wing had seized wage registers and supporting vouchers, which, on examination, would reveal that no single worker was in receipt of any cash payment exceeding ... single worker on a single day. 66. The Id.CIT(A) further took note of the fact that during the course of search proceedings, the Investigation Wing had seized the relevant supporting records such as cash vouchers, wage registers and allied documents. On examination of such seized material, the Id.CIT

Assistant Commissioner of Income Tax, Central Circle-2, Madurai vs. Transworld Garnet India Pvt Ltd., Chennai

ITA 1875/CHNY/2025[2015-16]Status: DisposedITAT Chennai23 Oct 2025AY 2015-16

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita Nos.:1872, 1873, 1875, 1877 & 1878/Chny/2025 निर्धारण वर्ष / Assessment Years: 2013-14, 2014-15, 2015-16, 2016-17 & 2017-18 Acit, Central Circle -2, Madurai. Vs. Transworld Garnet India Pvt. Ltd., 500, Pantheaon Road, Egmore S.O., Chennai - 600 008. [Pan: Aaact-3408-N] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/Appellant By : Shri. R.Venkata Raman, C.A. प्रत्यर्थी की ओर से/Respondent By : Shri. Shiva Srinivas, C.I.T. सुनवाई की तारीख /Date Of Hearing : 24.09.2025 घोषणा की तारीख/Date Of Pronouncement : 23.10.2025 आदेश /Order Per S. R. Raghunatha, Am : These Five Appeals Preferred By The Revenue Are Directed Against The Orders Passed By The Learned Commissioner Of Income Tax (Appeals)-19, Chennai [Hereinafter Referred To As “The Id.Cit(A)”]. The Impugned Orders Of The Id.Cit(A) Arise Out Of The Assessment Orders Framed By The Assistant Commissioner Of Income Tax, Central Circle-2, Madurai [Hereinafter Referred To As “The Ao”], In Respect Of The Assessment Years 2013-14 To 2017-18. The Particulars Of The Respective Appeals Filed By The Revenue Are Set Out Hereinbelow:- S. No

For Appellant: Shri. R.Venkata Raman, C.AFor Respondent: Shri. Shiva Srinivas, C.I.T

Section 132Section 132(4)Section 142(1)Section 143(2)Section 153ASection 40A(3)

Yogeshkumar Pravinkumar Shah, Mumbai vs. Asstt. Commissioner of Income Tax 19(3), Mumbai

ITA 4544/MUM/2025[2014-2015]Status: DisposedITAT Mumbai22 Oct 2025AY 2014-2015

Bench: Justice (Retd.) C V Bhadang & Ms Padmavathy S, Am

For Appellant: Shri K. Gopal & Om KandalkarFor Respondent: 16.09.2025

Section 10(38)Section 148Section 250Section 68

evidences submitted by the assessee. The ld. AR further submitted that the AO has merely reproduced the various findings in the report of the Investigation Wing and the statement recorded but has not recorded any finding as to how the assessee is linked to the alleged price rigging ... assessee. 4. The ld. DR on the other hand vehemently argued that the scrip is held to be a penny stock by the Kolkata Investigation Wing and there has been substantial increase in the share price. The ld. DR further argued that the AO has given a detailed finding with

M/S Rarity Agencies Limited, Kolkata vs. ITO, Ward 9(1), Kolkata

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

ITA 2341/KOL/2024[2015-16]Status: DisposedITAT Kolkata21 Oct 2025AY 2015-16

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 10(38)Section 143(3)Section 250Section 68

based his decision of treating the impugned transaction of sale of shares as bogus transaction by relying on the report of Investigation Wing of the Department wherein the Investigation Wing of the Department had studied the modus operandi of rigging the prices of penny stocks and generation of capital gain

Income Tax Officer, Ward-1(3)(1), Surat, Adajan vs. Shivlal Shamjibhai Ponkia, City Light Road, Surat

In the result, the appeal of the Revenue in ITA No

ITA 817/SRT/2024[2015-16]Status: DisposedITAT Surat17 Oct 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Bijayananda Prusethsl. आयकर अपील सं/ िनधा"रण वष"/ Appeal(S) By : No(S)

For Appellant: Shri Manish J. Shah, ARFor Respondent: Sl.Nos.1 &2 - Shri Aashish Pophare, CIT-DR

Section 143(1)Section 147Section 148Section 69A

Section 143(1) of the Income Tax Act, 1961 (“the Act” for short). Subsequently, in the case of assessee, information was received from the Investigation Wing that the assessee has made transaction of Rs.4,77,27,036/- in the penny scrip stock of JRI industries and Infra Structure

Income Tax Officer, Ward-2(3)(1), Surat vs. Ambubhai Thakorbhai Patel, Surat

In the result, the appeal of the Revenue is dismissed and the CO of the assessee is allowed

ITA 1020/SRT/2024[2016-17]Status: DisposedITAT Surat17 Oct 2025AY 2016-17

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.1020/Srt/2024 Assessment Year: 2016-17 (Hybrid Hearing) Income-Tax Officer Ward-2(3)(1), Ambubhai Thakorbhai Patel बनाम/ Surat, Room No. 614, 6Th Floor, 2/5 Bhesan, Gosai Faliyu Choryasi, Vs. Aaykar Bhawan, Majura Gate, Surat-395 005 Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Ctopp 7620 J (अपीलाथ"/Appellant) (""थ" /Respondent) ""या"ेप सं /Co No.9/Srt/2025 (A/O Ita No.1020/Srt/2024/ (Ay 2018-19) Ambubhai Thakorbhai Patel Income-Tax Officer Ward-2(3)(1), बनाम/ 2/5 Bhesan, Gosai Faliyu Surat, Room No. 614, 6Th Floor, Vs. Choryasi, Surat-395 005 Aaykar Bhawan, Majura Gate, Surat-395 001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Ctopp 7620 J (""यथ"/Respondent) (Co-Objector)

Section 147Section 148Section 250Section 250(2)Section 48

said addition is based on the incriminating evidence seized during the course of search in the case of K Star Group by the Investigation Wing. ii. On the facts and circumstances of the case and law, the Ld. CIT(A) has erred in deleting the addition of Rs.75

Income Tax Officer, Ward-2(3)(1), Surat vs. Bhanubhai Ranchhodbhai Asodaria, Surat

In the result, the appeal of the Revenue in ITA No

ITA 1003/SRT/2024[2015-16]Status: DisposedITAT Surat17 Oct 2025AY 2015-16

Bench: Shri Sanjay Garg & Shri Bijayananda Prusethsl. आयकर अपील सं/ िनधा"रण वष"/ Appeal(S) By : No(S)

For Appellant: Shri Manish J. Shah, ARFor Respondent: Sl.Nos.1 &2 - Shri Aashish Pophare, CIT-DR

Section 143(1)Section 147Section 148Section 69A

Income Tax Officer, Ward-1(3)(1), Surat, Anavil Business Centre, Hazira Raod vs. Sharmishthaben Shivlal Ponkia, Umra, Bharthana B.O, Surat

In the result, the appeal of the Revenue in ITA No

ITA 1002/SRT/2024[2015]Status: DisposedITAT Surat17 Oct 2025

Bench: Shri Sanjay Garg & Shri Bijayananda Prusethsl. आयकर अपील सं/ िनधा"रण वष"/ Appeal(S) By : No(S)

For Appellant: Shri Manish J. Shah, ARFor Respondent: Sl.Nos.1 &2 - Shri Aashish Pophare, CIT-DR

Section 143(1)Section 147Section 148Section 69A

Sh. Sukhvinder Singh, Kanpur vs. Pr CIT, Central, Kanpur

ITA 191/LKW/2020[2014-15]Status: DisposedITAT Lucknow17 Oct 2025AY 2014-15

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

For Appellant: Shri Samrat Chandra, C.AFor Respondent: Shri R. K. Agarwal, CIT(DR)

Section 263

Chapter-3 related to Assessment Procedure (Search and Seizure) are reproduced hereunder: “4, Appraisal report, panchanama and annexures: Along with the seized material the investigation wing forwards to the Assessing Officer an appraisal report, copies of warrant, ‘and the panchanama and its annexures. These should be handed over ... within two and a half months from the date of initiation of the search. The appraisal report comprises the investigation wing's findings on the search and may include a note on the modus operandi of tax evasion adopted by the searched parties and their associates, tentative computation of undisclosed

Sh. Sukhvinder Singh, Kanpur vs. Pr CIT, Central, Kanpur

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 190/LKW/2020[2012-13]Status: DisposedITAT Lucknow17 Oct 2025AY 2012-13

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

For Appellant: Shri Samrat Chandra, C.AFor Respondent: Shri R. K. Agarwal, CIT(DR)

Section 263

Shri Vinay Pratap Singh, Lucknow vs. Astt. Commissioner of Income Tax, Lucknow

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

ITA 688/LKW/2015[2012-13]Status: DisposedITAT Lucknow17 Oct 2025AY 2012-13

Bench: SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. Swarn Singh, C.AFor Respondent: Sh. R.K. Agarwal, CIT DR

Section 132Section 143(3)Section 153CSection 153D

carried out, but as per the panchnama, in reality it was not there and the bank account was furnished by the assessee before the Investigation Wing on 29.02.2012. Therefore, it was clear that no relevant material belonging to the assessee was found at the time of search to qualify

Maruti Brokerage House Pvt. Ltd., Ahmedabad vs. The ITO, Ward-2(1)(4), Ahmedabad

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 1080/AHD/2025[2011-12]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2011-12

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri Jimi Patel, ARFor Respondent: Shri Abhijit, Sr.DR

Section 143(3)Section 148Section 156Section 250

order passed in both the years pointing out that the addition had been made relying merely on a report of investigation conducted by the Investigation Wing of the Department revealing brokers to have indulged in client code modification so as to benefit assessee who required profits to be shifted

Maruti Brokerage House Pvt. Ltd., Ahmedabad vs. The ITO, Ward-2(1)(4), Ahmedabad

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 1079/AHD/2025[2010-11]Status: DisposedITAT Ahmedabad17 Oct 2025AY 2010-11

Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)

For Appellant: Shri Jimi Patel, ARFor Respondent: Shri Abhijit, Sr.DR

Section 143(3)Section 148Section 156Section 250