Transfer of FD of Deceased Husband during Demonetisation Period for purchase Agriculture plot: ITAT Remands matter to AO for verification [Read Order]

The single member bench of Income Tax Appellate Tribunal ( ITAT ) of Pune while observing the transfer of fixed deposits of deceased husbands during the demonetisation period for purchase of agricultural plots remands the matter to the file of Assessing Officer ( AO ) for verification. During the demonetization period , the  Assessee Shantabai Jasraj Lodha withdrew Rs.20 lakhs for the purpose of purchasing a particular property .

Accordingly on failure to  provide any evidences regarding failure to purchase such property and  evidences  regarding source of such cash deposit of Rs.20 lakhs during the demonetization period the AO made the addition in the hands of assessee. Aggrieved by the order the assessee filed an appeal before the CIT(A) who confirmed the addition. Hence the assessee filed another appeal before the tribunal. During the adjudication the assessee  submitted that after death of her husband, there were certain FD and savings balance which was transferred to her account from the account of the husband and from there, she had withdrawn Rs.19.70 lakhs to purchase a plot of agricultural land, which later on did not materialize and that she had deposited the same amount back into her savings account on 22.11.2016.

Sourabh Nayak , Counsel for Revenue argued that the assessee could  not give any proof of his/her intention to purchase the property for which cash was withdrawn. It was observed that the Revenue has simply dismissed the veracity of submission made by the assessee stating it to be a mere narration. However the bench determined that”it has to be found out whether the source of money is from the assessee‟s husband account or not and whether the same amount was again deposited in her account “. After reviewing the facts the ITAT bench of Partha Sarathi Chaudhury, ( Judicial Member )  remand the matter to the file of AO for complete verification of the submissions made by the assessee with respect to the FD transferred from the account of assessee husband . To Read the full text of the Order CLICK HERE

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