ITAT Deletes Addition: Cash Deposit from Late Spouse’s Past Savings

Ramesh Rani Chatwal Vs ITO (ITAT Delhi) Introduction: The Ramesh Rani Chatwal vs ITO case ruled by ITAT Delhi is a significant judgment dealing with additions to income from unexplained investments. In this case, the ITAT upheld the right of an individual to use personal savings, including those from a late spouse, for the repayment of a bank loan, and dismissed the claim that such actions constitute unexplained investment. Analysis: Ramesh Rani Chatwal, an elderly woman, was subjected to an adhoc addition of Rs. 1188000 by the AO and the CIT (A) to her income as unexplained investment, follow...