ITAT Pune deletes tax demand on Rs 60 lakh cash deposit
The tribunal accepted a widow's explanation that the funds were a gift from her deceased husband for her and her daughters.
The Income Tax Appellate Tribunal (ITAT) Pune has ruled in favour of a widow, ordering the deletion of a tax addition involving a cash deposit of Rs 60 lakh. According to a report by The Times of India, the Income Tax Department had initially treated the amount as unexplained income.
The department discovered a cash deposit of Rs 60,07,500 in the woman's bank account during the 2015-16 financial year. Because she had not filed an income tax return (ITR) for that assessment year, the Assessing Officer (AO) issued notices and eventually treated the amount as unexplained money under Section 69A.
The woman filed her ITR in 2024, declaring a total income of Rs 12,000. She explained that the money was a gift from her husband, who died in 2023, intended for her and their two minor daughters.
To support her claim, the woman, identified as Ms Parve, provided her husband's death certificate, PAN details, an affidavit, bank statements, and confirmations from her daughters. Her counsel stated she was a housewife with no independent source of income.
The tribunal observed that since the husband had passed away, he could not provide a personal confirmation. However, it noted she had met the burden of establishing the donor's identity and relationship.
The ITAT concluded that the addition under Section 69A was not justified and directed the AO to delete the Rs 60 lakh addition.