ACIT CENTRAL CIRCLE-II, NOIDA V. SHIKHA TIWARI , DELHI

ITA 1225/DEL/2022

AI Insights

The case involves appeals by the revenue against the decision of the Commissioner of Income Tax (Appeals) which had deleted an addition made by the Assessing Officer regarding unexplained investment in property by the assessee, Shikha Tiwari. The property in question was co-owned by Shikha Tiwari and her husband, Piyush Tiwari, and was subject to a search and seizure operation under Section 132 of the Income-tax Act, 1961. The Assessing Officer had made an addition of Rs 7,29,05,000 in the hands of Shikha Tiwari, claiming it as her unexplained investment in the property. However, the CIT(A) found that the entire investment was made by her husband, as supported by the transfer deed and the assessment order of Piyush Tiwari for the same property, which had already been assessed. The Tribunal upheld the CIT(A)'s decision, leading to the dismissal of the revenue's appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 303125 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANAND BHASKAR
• Assessee Lawyers: ASHWANI TANEJA
• Keywords: Unexplained investment; Search and seizure
• Section: 144; 132; 153A

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 1225 & 1226/Del/2022 (Assessment Year: 2014-15) ACIT, Central Circle-II, Noida Vs. Shikha Tiwari, C-7/II Basant Villa, Model Town, Delhi- 110075 (Appellant) (Respondent) PAN: BBDPS3697A Assessee by : Shri Ashwani Taneja, Adv Shri Shivam Kukreja, Adv Revenue by: Shri Anand Bhaskar, Sr. DR Date of Hearing 21/02/2025 Date of pronouncement 23/04/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA Nos. 1225 & 1226/Del/2017 for AY 2014-15, arises out of the order of the Commissioner of Income Tax (Appeals)-4, Kanpur [hereinafter referred to as „ld. CIT(A)‟, in short] in Appeal No. CIT(A)-IV/KNP/11088 /2018-19 dated 31.01.2022 against the order of assessment passed u/s 153A/ 144 of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟) dated 30.11.2016 by the Assessing Officer, DCIT, Central Circle, Noida (hereinafter referred to as „ld. AO‟). As these are quantum and penalty appeals, they are taken up together and disposed of by this common order for the sake of convenience. 2. Let us take the quantum appeal first. 3. The only effective issue to be decided in the quantum appeal of the revenue is as to whether the learned CIT(A) was justified in deleting the addition ITA Nos. 1225 & 1226/Del/2022 Shikha Tiwari Page | 2 made in the sum of Rs 7,29,05,000/- on account of unexplained investment in property , in the facts and circumstances of the instant case. 4. We have heard the rival submissions and perused the materials available on record. A search and seizure operation under Section 132 of the Act was conducted on 9-10-2013 on the premises of the assessee comprising Shubh Kamna Build Tech Pvt Ltd. Group of cases. Various incriminating documents were found and seized from the residential and business premises of the assessee, wife of Shri Piyush Tiwari, one of the director of M/s Shubhkamna Build Tech Pvt Ltd. Notice under section 153A of the Act stood issued to the assessee on 11-12-2015. For the assessment year 2014-15, the assessee had electronically filed her return of income on 30-1-2015 declaring total income of Rs. 44,73,069/-. The learned AO observed that from the information available, it was found that assessee is the co-owner of the Plot No. 80, 15A, Noida, representing investment made in house property along with her husband, Shri Piyush Tiwari.The total purchase consideration for the said property was arrived at Rs.14,58,10,000 as under:- Cost of the property - Rs 13,00,00,000/- Stamp duty -Rs.65,00,000/- Cost of Construction - Rs.93,10,000/- TOTAL Rs.14,58,10,000 5. The assessee clearly explained before the Learned AO that she had not spent even a penny towards investment in the subject mentioned property and that the entire payments were made only by her husband out of his own funds and out of bank borrowings. This statement of the assessee was not accepted by the Learned AO and an addition in the sum of Rs 7,29,05,000/- was made in the hands of the assessee as unexplained investment in the property, being 50% share. Before the Learned CITA, the assessee reiterated the entire contentions made before the Learned AO. Further, the assessee also placed on record the assessment order framed in the hands of her husband Shri Piyush Tiwari for the ITA Nos. 1225 & 1226/Del/2022 Shikha Tiwari Page | 3 assessment year 2014-15 under section 153A read with section 144 of the Act dated 30-11-2016, wherein the Assessing Officer had made an addition on account of unexplained investment of very same property in the total sum of Rs. 14,58,10,000/- in the hands of her husband. The Learned CITA sought for a remand report from the Learned AO. The Learned AO did not give any adverse comments in the said remand report. The Learned CITA duly appreciated the contentions of the assessee and deleted the addition by observing as under:- “6.21 In the matter of addition of Rs. 7,29,05,000/-, the AO has observed that total investment of Rs. 14,58,10,000/- was made in the property situated at House No. 80 Sector 15A, Noida, which consists of Rs. 13,00,00,000/- as sale consideration, Rs. 65,00,000/- in stamp duty and Rs. 93,10,000/- as cost of Construction and hence half of this amount has been considered as undisclosed investment made by the appellant. On the other hand, the appellant has relied on the transfer deed cum sale deed in respect of property situated at House No. 80, Sector 15A, Noida which was transferred by Sh. P N Vijay and his wife Smt. Shiromani Vijay to Sh. Piyush Tiwari and his wife Smt. Shikha Tiwari i.e. the appellant. It has been submitted that entire payment of Rs. 13,00,00,000/- and stamp value of Rs. 65,00,000/- has been paid by Sh. Piyush Tiwari and the details of the same are clearly mentioned in the deed itself. From the same it can be seen that Rs 3,00,00,000/- are paid from Axis Bank account of Sh. Piyush Tiwari and Rs. 10,00,00,000/- as loan from Bank of Baroda. 6.22 From the assessment order of Sh. Piyush Tiwari for AY 2014-15, it has been found that the AO has made addition of entire amount of Rs. 14,58, 10,000/- on account of undisclosed investment in this property. In the page no. 9 of assessment order of Sh. Piyush Tiwari for AY 2014-15 the AO has produced statement of Smt. Shikha Tiwari which was given by her on oath and in reply to question no. 16, she clarifies that property situated at Plot no. 80, Sector 15A, Noida was entirely purchased by her husband. The same statement has also been produced in page no. 6 of assessment order of the appellant. From this statement it is very clear that the appellant has not made any investment in the property under consideration. This fact is also supported from the details mentioned in the transfer deed cum sale deed. The appeal filed against addition of Rs. 14,58,10,000/- made in the hands of Sh. Piyush Tiwari in AY 2014-15 has been dismissed for want of prosecution by CIT(A)-IV, Kanpur in Appeal no. CIT(A)- IV/KNP/10058/DCIT-CC-II/Noida/2018-19/546 dt. 12.12.2019. Therefore the addition on account of undisclosed investment in the property situated at Plot No. 80, Sector 15A, Noida has already been made and confirmed in the hands of Sh. Piyush Tiwari ie. the husband of the appellant. Thus, it is concluded that AO could not bring anything on record, from which it may ITA Nos. 1225 & 1226/Del/2022 Shikha Tiwari Page | 4 be derived that the appellant i.e. Smt. Shikha Tiwari has made any undisclosed investment in the property situated at House No. 80, Sector 15A, Noida. 6.23 Looking to the facts and circumstances of the case, it is concluded that in the matter of investment made in the property situated at House No. 80, Sector 15A, Noida, the AO failed to bring anything on record from which it may be proved that appellant has made any investment which may be added in her hands. Therefore the addition of Rs. 7,29,05,000/- made in the hands of the appellant is hereby deleted.” 6. None of the factual findings recorded by the Learned CITA could be controverted by the revenue before us. In any event, the addition has already been in the hands of assessee‟s erstwhile husband, Shri Piyush Tiwari in the sum of Rs 14,58,10,000/-. Hence any addition made in the hands of the assessee for the very same property would only result in double addition, which mistake had been duly rectified by the Learned CITA by giving relief to the assessee herein. Hence we do not find any infirmity in the order passed by the Learned CITA in this regard. Accordingly, the grounds raised by the revenue in the quantum appeal are dismissed. 7. Since the quantum appeal is decided in favour of the assessee, there would be no penalty under section 271AAB of the Act for the same. Hence the Learned CITA had rightly deleted the levy of penalty under section 271AAB of the Act. 8. In the result, both the appeals of the revenue are dismissed. Order pronounced in the open court on 23/04/2025. -Sd/- -Sd/- (C. N. PRASAD) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:23/04/2025 A K Keot Copy forwarded to ITA Nos. 1225 & 1226/Del/2022 Shikha Tiwari Page | 5 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "