Smt. Padmalatha Vojjala Vs ITO (ITAT Hyderabad)
Unexplained cash deposits of widow remanded: ITAT admits additional evidence on sale of inherited assets
Hyderabad ITAT, in set aside the orders of the lower authorities and remanded the matter to the Assessing Officer for fresh adjudication, after admitting additional evidence under Rule 29 of the ITAT Rules.
The Assessee, a widow, had deposited cash of ₹1.11 crore in her bank account but had not filed a return u/s 139. The case was reopened u/s 147, and the AO treated the cash deposits as unexplained money u/s 69A, rejecting the explanation that the amounts represented sale proceeds of inherited agricultural land and gold jewellery received from her father. The CIT(A), NFAC, confirmed the addition for want of documentary evidence.
Before the Tribunal, the Assessee produced additional evidence, including Adangal/Pahani extracts, receipts for cash received from alleged purchasers, and an unregistered agreement relating to sale of agricultural land, explaining that these documents could not be produced earlier due to genuine difficulties. The ITAT held that the evidence was crucial to the core issue and admitted it under Rule 29.
However, the Tribunal noticed serious inconsistencies, including mismatch in dates between the agreement and cash receipts, timing of cash receipts vis-à-vis the relevant financial year, absence of registered sale deeds, and lack of verification of purchasers’ identity and creditworthiness. It also emphasised the need to examine the chain of title, i.e., inheritance from the father to the Assessee and the subsequent alleged transfer to purchasers.
In view of these unresolved factual aspects, the ITAT set aside the findings of the AO and CIT(A) and restored the issue to the AO for de novo examination, directing verification of purchasers, reconciliation of dates, and scrutiny of inheritance and transfer records, with a speaking order to be passed after granting due opportunity to the Assessee. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
