“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

Amarjot Singh Village Babehali Distt Gurdaspur, Gurdaspur vs. Income Tax Officer Ward Gurdaspur G T Road Gurdaspur, Gurdaspur

In the result, all the five appeals filed by the assessee are allowed for statistical

ITA 103/ASR/2025[2017-2018]Status: DisposedITAT Amritsar07 Oct 2025AY 2017-2018

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. P. N. Arora, Adv

Section 142(1)Section 143(3)Section 147Section 148Section 250Section 69

source and agricultural income of Rs. 22.70 lakhs, which has been assessed u/s 143(3) of the Act 61. 4. Subsequently, on information from investigation wing and verification of his Axis Bank statement (A/c No xxxxxx89190 ) it was observed that an amount of Rs 1.70 crores has been invested

Amarjot Singh Village Babehali Distt Gurdaspur, Gurdaspur vs. Income Tax Officer Ward Gurdaspur, Gurdaspur

In the result, all the five appeals filed by the assessee are allowed for statistical

ITA 102/ASR/2025[2017-2018]Status: DisposedITAT Amritsar07 Oct 2025AY 2017-2018

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. P. N. Arora, Adv

Section 142(1)Section 143(3)Section 147Section 148Section 250Section 69

Amarjot Singh Village Babehali Distt Gurdaspur, Gurdaspur vs. Income Tax Officer Ward Gurdaspur, Gurdaspur

In the result, all the five appeals filed by the assessee are allowed for statistical

ITA 101/ASR/2025[2015-2016]Status: DisposedITAT Amritsar07 Oct 2025AY 2015-2016

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. P. N. Arora, Adv

Section 142(1)Section 143(3)Section 147Section 148Section 250Section 69

Amarjot Singh, Village Babehali Distt Gurdaspur vs. Income Tax Officer Gurdaspur, Gurdaspur

In the result, all the five appeals filed by the assessee are allowed for statistical

ITA 598/ASR/2024[2017-2018]Status: DisposedITAT Amritsar07 Oct 2025AY 2017-2018

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. P. N. Arora, Adv

Section 142(1)Section 143(3)Section 147Section 148Section 250Section 69

Amarjot Singh, Gurdaspur vs. Income Tax Officer Ward Gurdaspur, Gurdaspur

In the result, all the five appeals filed by the assessee are allowed for statistical

ITA 597/ASR/2024[2015-2016]Status: DisposedITAT Amritsar07 Oct 2025AY 2015-2016

Bench: Sh. Manoj Kumar Aggarwal & Sh. Udayan Dasgupta

For Appellant: Sh. P. N. Arora, Adv

Section 142(1)Section 143(3)Section 147Section 148Section 250Section 69

Sanjay Jayantilal Shah, Ahmedabad vs. The ITO, Ward-2(1)(1), Ahmedabad

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

ITA 79/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad07 Oct 2025AY 2014-15

Bench: S/Shri Sanjay Garg & Makarand V.Mahadeokarasstt.Year : 2014-2015 Sanjay Jayantilal Shah Ito, Ward-2(1)(1) 202/A, Shivalik 10 Vs. Vejalpur Opp: Sbi Zonal Office Ahmedabad. Ambawadi, Ahmedabad 380 015 Pan : Aktps 8891 A (Applicant) (Responent) : Assessee By Shri S.N. Divatia & Shri Samir Vora, Ars. : Shri Kalpesh Rupavatia, Sr.Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 30/09/2025 घोषणा क" तारीख /Date Of Pronouncement: 07/10/2025 आदेश/O R D E R आदेश आदेश आदेश Per Makarand V.Mahadeokar, Am: This Appeal By The Assessee Is Directed Against The Order Dated 29.11.2024 Passed By The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi, [Hereinafter Referred To As "Cit(A)"], For The Assessment Year 2014–15, Arising Out Of The Assessment Order Dated 31.03.2022 Passed U/S 147 Read With Section 144B Of The Income-Tax Act, 1961 (Hereinafter Referred To As "The Act") By The National Faceless Assessment Centre, Delhi [Hereinafter Referred To As "Assessing Officer Or Ao"].

Section 10(38)Section 144BSection 147Section 148Section 234ASection 271(1)(c)Section 68Section 69C

sale of equity shares claimed exempt u/s 10(38) of the Act. The return was initially processed. Subsequently, based on information received from the Investigation Wing of the Income Tax Department, the case of the assessee was reopened by issue of notice u/s 148 on 30.03.2021. 2.2 During the course ... which was claimed as exempt Long Term Capital Gain. The Assessing Officer observed that the said scrip was identified by the Investigation Wing as one of the penny stock companies which had been used as a vehicle for providing accommodation entries in the guise of bogus Long Term Capital Gain

Income-Tax Officer, Ward-1, Raichur vs. Maralbid Padmavathi, Raichur

In the result, appeal filed by theRevenue is dismissed

ITA 1006/BANG/2025[2016-17]Status: DisposedITAT Bangalore07 Oct 2025AY 2016-17

Bench: Shri.Laxmi Prasad Sahu & Shri. Soundararajan Kassessment Year : 2016-17 Ito, Vs. Maralbid Padmavathi, Ward – 1, 4-4-145, Zahirabad Raichur, Raichur. Raichur – 584 101, Karnataka. Pan :Anhpp 8615 N Appellant Respondent Assessee By : Shri. Narendra Sharma, Advocate Revenue By : Shri. Shankar Ganesh D, Addl. Cit(Dr)(Itat), Bangalore. Date Of Hearing : 12.08.2025 Date Of Pronouncement : 07.10.2025

For Appellant: Shri. Narendra Sharma, AdvocateFor Respondent: Shri. Shankar Ganesh D, Addl. CIT(DR)(ITAT), Bangalore

Section 139Section 142(1)Section 143(2)Section 147Section 148Section 271(1)(b)

appeal before the Tribunal. The learned DR strongly supported the Order of the AO and contested that in the income tax department there is investigation wing and has conducted enquiry regarding financial transactions which are not reported in the regular return filed by the assessee. Accordingly, the investigation wing observed ... credible evidence to prove that the Page 7 of 8 assessee has received any “on money” from the buyer except report furnished by the investigation wing. Therefore, the entire proceedings initiated by the AO under section 147/148 of the Act is bad in law. He further submitted that

Abhishek Gourasaria, Jamshedpur vs. ACIT, Jamshedpur

In the result, consequential assessment order also stands quashed

ITA 43/RAN/2023[2013-14]Status: DisposedITAT Ranchi06 Oct 2025AY 2013-14

Bench: Shri George Mathan & Shri Ratnesh Nandan Sahayabhishek Gourasaria, A.C.I.T., 118, Flat No. 2B, Surabhi Apartment, K Jamshedpur Vs. Road, Bistupur, Jamshedpur-831001. Pan No. Adwpg 2149 R Appellant/ Assessee Respondent/ Revenue

Section 139Section 147Section 148Section 149Section 151Section 153Section 153ASection 153C

without having of his own satisfaction on the material received/possessed, the provision contained U/S 147 cannot be invoked on the borrowed information from the Investigation Wing of the Dept. 1. ACIT Vs. Dhariya Construction Co. (2010) 328ITR 515 S.C. 2. CIT v. India Terminal Connector System

Smt. Ritu Soin, Ludhiana vs. ACIT, CC-II, Ludhiana

In the result, both the appeals are allowed

ITA 305/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh06 Oct 2025AY 2012-13

For Appellant: Shri Ashwani Kumar, CA andFor Respondent: Smt. Kusum Bansal, CIT DR

Section 10(38)Section 143(3)Section 153ASection 153DSection 263

course of search. No such material was either found during the course of search nor any material was transmitted to the AO by Investigation Wing of Calcutta. The whole addition is being made on a theoretical narration made by the AO. Without collecting any evidence, AO simply assumed that

Ravindra Jaisingrao Chavan, Aurangabad, Maharashtra vs. ACIT, Central Circle 1, Aurangabad, Maharashtra

In the result, the appeal filed by the assessee is allowed for statistical purposes as per terms indicated hereinabove

ITA 1109/PUN/2025[2021-22]Status: DisposedITAT Pune06 Oct 2025AY 2021-22

Bench: Dr.Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Vardhaman L. JainFor Respondent: Shri Amit Bobde

Section 131Section 133ASection 142(1)Section 143(3)Section 263

been dealt with by the Assessing Officer properly and this requires further examination and verification. 3.2. In this case, action u/s.131 was conducted by Investigation Wing by ADIT, Jabalpur and subsequently survey u/s.133A of the I.T. Act was conducted on 05/03/2021 by DDIT (Inv.), Aurangabad at your office premises ... diary was impounded 4 Ravindra Jaisingrao Chavan from the possession of the assessee and back up of mobile whatsapp messages was taken by the Investigation Wing, Jabalpur. 3.3. During the course of statement u/s.131(1A) of the Act, the assessee was confronted with the notings make in black diary vide

Narendra Kachrulal Abad, Jalna vs. Income-Tax Officer, Ward - 1, Jalna

In the result, appeal of the assessee partly allowed

ITA 866/PUN/2019[2009-10]Status: DisposedITAT Pune06 Oct 2025AY 2009-10

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपऩल सं. / Ita No.866/Pun/2019 निर्धारण वषा / Assessment Year: 2009-10 Shri Narendra Kachrulal Abad, V The Income Tax Officer, Abad House, Nal Galli, S Ward-1, Jalna. Kadrabad, Jalna – 431203. Maharashtra. Pan: Acspa9531C Appellant/ Assessee Respondent / Revenue Assessee By Shri Hari Krishan – Ar Revenue By Shri Arvind Renge –Addl.Cit(Dr) Date Of Hearing 28/07/2025 Date Of Pronouncement 06/10/2025 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By Assessee Against The Order Of Ld.Commissioner Of Income Tax(Appeal)-1, Aurangabadpassed Under Section 250 Of The Income Tax Act, 1961 For The A.Y.2009-10 Dated 30.03.2019, Emanating From Order U/S.143(3) R.W.S 147Of The Income Tax Act, 1961, Dated 03.11.2017. The Assessee Has Raised The Following Concise Grounds Of Appeal :

Section 143(3)Section 148Section 250

reasons recorded by the Assessing Officer are without application of mind. Ld.AR submitted that there was report from the Investigation Wing which is at page no.1 to 3 of the paper book. The report specifically mentions about certain Annexures. However, no Annexures are enclosed with the said letter. No Annexures ... served on 21-04-2016. The assessment has been re-opened on the basis of a report (PB, page 1-3) of the Investigation Wing that the profit and loss has been manipulated by the Client Code Modifications (CCM). The re-opening of the assessment was challenged before the Assessing

Gosrani Impex Private Limited, Mumbai vs. ACIT, Circle -1, Kalyan

In the result, the assessee’s appeal is allowed

ITA 3590/MUM/2025[2017-18]Status: DisposedITAT Mumbai06 Oct 2025AY 2017-18

Bench: Shri Pawan Singh & Smt.Renu Jauhrigosrani Impex Private Vs. Commissioner Of Income Limited Tax(Appeals), Nfac, 1748, A/304, 3Rd Floor, Income Tax Department Anjul Tower, Kamatghar 1St Floor, Mohan Plaza, Road, Opp Shatrunjay Wayale Nagar, Khadakpada, Mandir, Bhiwandi, 421302. Kalyan (W)-421301. "थायी लेखा सं./जीआइआर सं./Pan/Gir No:Aadcg7638J Appellant .. Respondent

For Appellant: Shri Varun Tiwari-CAFor Respondent: Shri Swapnil Choudhary- Sr. AR

Section 250Section 68

these sales u/s. 68 on the basis of the statement of Shri. Gopal Maroo, partner of M/s. Hariram Jagdish Prasad, recorded by the investigation wing, wherein he had admitted that the firm was engaged in the business of facilitating conversion of cash into cheque/demand draft and vice versa on commission ... wherein it has been held as under: “Thus, the entire disallowance in this case is based on third party information gathered by the Investigation Wing of the Department, which have not been independently subjected to further verification by the AO who has not provided the copy of such statements

Rikin Kirit Shah, Mumbai vs. DCIT Central Circle 1(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 2495/MUM/2025[2012-13]Status: DisposedITAT Mumbai06 Oct 2025AY 2012-13

Bench: Shri Pawan Singh & Shri Prabhash Shankarrikin Kirit Shah V/S. Deputy Commissioner Of C/O Ca, Himanshu Gandhi, बनाम Income Tax, Central Circle– 16Th Floor, D Wing, Trade 1(1), Room No. 903, 9Th Floor, World Towers, Kamala Pratishtha Bhavan, Old Cgo Mills Compound, Lower Annexe, Maharishi Karve Parel, Mumbai – 400013, Road, Mumbai–400020, Maharashtra Maharashtra स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aljps1842E Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Mr. Himanshu Gandhi, CAFor Respondent: Shri Annavaran Kasuri (Sr.AR)

Section 132Section 143(3)Section 145(3)

were being actually managed, controlled and operated by Bhanwarlal Jain and family u/s 132 of the Act. Based on the information received from the Investigation Wing, the case was taken up for scrutiny. After considering the replies of the assessee, the addition was made on Gross ... addition by the gross profit margin already declared by it. The ld.CIT(A) observed further that that in this case information was received from Investigation wing Mumbai that appellant had made bogus purchases from various parties P a g e | 5 A.Y. 2012-13 Rikin Kirit Shah, Mumbai amounting

Pelican Tobacco India Private Limited vs. ITO, Ward - 19(4), New Delhi

Appeal is allowed

ITA 129/DEL/2024[2012-13]Status: DisposedITAT Delhi01 Oct 2025AY 2012-13

Bench: Sh. Satbeer Singh Godara & Sh. Avdhesh Kumar Mishra

For Appellant: Sh. Udit Dad, AdvFor Respondent: Sh. Om Prakash, Sr. DR

Section 143(2)Section 147Section 148Section 2

appellant has filed a return of income on 30.09.2012 declaring a total income as Nil. Subsequently in view of the information received from the Investigation wing and after recording the reasons and taking necessary approval from the competent authority, notice u/s 148 was issued and served upon the appellant

Deputy Commissioner of Income Tax, Delhi vs. Kawatra Tent and Caterers Private Limited, Delhi

ITA 2734/DEL/2023[2012-13]Status: DisposedITAT Delhi01 Oct 2025AY 2012-13

Bench: Sh. Satbeer Singh Godara & Sh. Avdhesh Kumar Mishra

For Appellant: NoneFor Respondent: Sh. D. S. Sidhu, CIT-DR

Section 132Section 132ASection 139Section 147Section 148Section 149Section 151Section 153Section 153A

case of appellant was reopened u/s 147 of the Act. 1961 on the basis of information received by the jurisdictional AO from the investigation wing of IT Department. The assessment was completed at an income of Rs.5.20.96.210/- after making addition of suppressed sales of Rs.5.25.65.017/- by applying suppression factor

Income Tax Officer, Ward-1, Katni vs. Aditya Agrawal, Katni

In the result, the appeal of the Revenue is dismissed

ITA 200/JAB/2024[2016]Status: DisposedITAT Jabalpur30 Sept 2025

Bench: Shri Kul Bharatassessment Year: 2016-17 Income Tax Officer, Ward-1 V. Aditya Agrawal Near New Collectorate, Jhinjhiri- C/O. Shri Ram Food 483501. Product, Industrial Area Bargawan-483501. Pan:Amepa0405H (Appellant) (Respondent) Appellant By: Shri Rahul Badia, Ca Respondent By: Shri N. M. Prasad, Sr. Dr-1 Date Of Hearing: 18 09 2025 Date Of Pronouncement: 30 09 2025 O R D E R

For Appellant: Shri Rahul Badia, CAFor Respondent: Shri N. M. Prasad, Sr. DR-1

Section 10(38)Section 143(2)Section 148Section 68

creditworthiness aspects as well through supporting documents without appreciating the facts and findings well elaborated by the Assessing Officer that the report of the Investigation Wing clearly mentions that how the scrip of Safal Herbs was rigged and was used to provide entry in the form of exempt income under ... Safai Herbs Ltd and declared and claimed exempt capital gain of Rs.1,24,465/-. Thereafter, the Assessing Officer considering the information from the Investigation Wing, Ahmedabad, came to the conclusion that the transaction pertaining to the purchase and shares of M/s. Safai Herbs Ltd as undertaken by the assessee

Jeevan Jyoti Infrastructure Company Private Limited, Allahabad vs. DCIT, Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 56/ALLD/2025[2012-13]Status: DisposedITAT Allahabad30 Sept 2025AY 2012-13

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

learned Counsel for the assessee that considering the enormity of seized materials, digital data, submissions of the assessees, appraisal report provided by the Investigation Wing of Income Tax Department, reports under Rules 9 and 9A of ITSC(P) Rules, and other materials including assessment records, it was humanly impossible ... letter of approval to reach the Assessing Officer along with seized materials, digital data, submissions of the assessees, appraisal report provided by the Investigation Wing of Income Tax Department, reports under Rules 9 & 9A of ITSC(P) Rules and other materials including assessment records to reach the Assessing Officer

Minto Colonizers Private Limited, Allahabad vs. DCIT Central Circle, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 54/ALLD/2025[2009-10]Status: DisposedITAT Allahabad30 Sept 2025AY 2009-10

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Deputy Commissioner of Income Tax, Allahabad vs. Navjeevan Pediatrics Private Limited, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 44/ALLD/2025[2013-14]Status: DisposedITAT Allahabad30 Sept 2025AY 2013-14

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Deputy Commissioner of Income Tax (Central Circle), Allahabad vs. Jeevan Jyoti Charitable Trust, Allahabad

In the result, the appeals and Cross Objections filed by the assessees are allowed and the appeals of the Revenue are dismissed

ITA 41/ALLD/2025[2013-14]Status: DisposedITAT Allahabad30 Sept 2025AY 2013-14

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria