Amar Devi Vs ITO (ITAT Jaipur)
Jaipur ITAT Deletes Additions for FDR Maturity Proceeds and Cash Redeposit; Best-Judgment Assessment Cannot Be Based on Arbitrary Estimates
Summary: The assessee, an 83-year-old widow receiving family pension, had not filed her return of income or responded to reassessment notices. For Assessment Year 2010-11, the Assessing Officer completed a best-judgment assessment under Section 144 read with Section 147 of the Income Tax Act, 1961 and determined total income at ₹5,15,447, comprising ₹1,50,000 estimated regular income, ₹1,06,000 cash deposits, ₹2,42,507 deposit through transfer and ₹16,940 interest income. The CIT(A) upheld the additions.
The Jaipur ITAT found that the disputed transfer credit of ₹2,41,642 represented maturity proceeds of an FDR of ₹2,00,000 made on 14.05.2007 and matured on 14.05.2009. The FDR receipt and bank passbook established a direct nexus between the maturity proceeds and the credit. The Tribunal therefore held that the amount represented the assessee’s own funds and directed deletion of the addition.
For the ₹1,06,000 cash deposits, the bank passbook reflected earlier cash withdrawals aggregating ₹2,45,000 from the same account. In the absence of material showing that the withdrawn amounts had been spent or otherwise utilised, the Tribunal held that the cash deposits were explained from the earlier withdrawals. As the assessee had explained the source and the AO brought no contrary evidence, the addition was directed to be deleted.
