2025 (8) TMI 1499 - AT - Income Tax

Unexplained joint account cash deposits not taxed to employee absent evidence she made deposits; primary account holder deceased

ITAT allowed the appeal, holding that unexplained cash deposits in a joint bank account were not assessable to the appellant because the primary account ... Unexplained cash deposit in joint bank account - HELD THAT:- A perusal of the instant case file indicates that it was the assessee’s deceased husband who was the primary account holder in the joint bank account concerned; who expired way back on 4.12.2019. There is no material in the appeal file which could indicate that it was assessee who had in fact deposited the cash herein in the bank account. There is further no dispute between the parties that the assessee is a salaried employee with M/s DPS Schools, working as a teacher. And that she had duly disclosed her salary amount on which TDS had already been deducted. Thus, we conclude that once the assessee has not been held to have herself made the cash deposits in the joint bank account, the same is not assessable in her hands. Assessee appeal allowed. Appeal against National Faceless Appeal Centre (NFAC) order dated 27.05.2024 (proceedings u/s 144 of the Income-tax Act) challenged an addition of Rs. 40.38 lakhs treated as unexplained cash deposits in a joint bank account. Material facts: the joint account's primary holder (the assessee's husband) was deceased; there is no material showing the assessee 'had in fact deposited the cash herein in the bank account'; the assessee is a salaried employee who disclosed salary income and had TDS deducted. Held: since the assessee was not 'held to have herself made the cash deposits in the joint bank account, the same is not assessable in her hands,' and the 'impugned addition of Rs. 40.38 lakhs made in her hands is accordingly deleted in very terms.' Appeal allowed.