TaxTMI 
TaxTMI 
2021 (6) TMI 57
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....015-16. 2. All the grounds of appeal are related to the addition made by the Assessing officer(AO) amounting to Rs. 51,13,000/- deposits made in joint account maintained with HDFC Bank A/c. No.23971930000076 in the joint names of Marri Venkata Subbareddy, Smt. Marri Vijayala Lakshmi and Smt. Subbayamma Reddy. The AO found that the assessee is having joint account with HDFC Bank in the names of Smt.Subbayamma Reddy, Marri Venkata Subbareddy and the assessee. In the said joint account total deposits of Rs. 64,83,000/- was made during the F.Y. 2014-15, out of which Rs. 13,70,000/- was accepted as explained for sale of agricultural land by Smt. Subbayammaredyy and the balance amount of Rs. 51,13,000/- was brought to tax as unexplained cash dep....
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....assessee. Further, ld.AR also submitted that since the assessee has intimated the AO that joint account belongs to her mother-in-law Smt.Subbayamma Reddy who is a joint account holder, if at all addition required to be made, the same required to be made in the hands of her mother-in-law but not in her hands. The ld.AR also submitted that the assessment in the case of her husband Shri Marri Venkata Subba Reddy was completed u/sec. 143(3) without making the addition relating to cash deposits and accepting the explanation that the deposits in the account were pertained to Smt. Subbayamma Reddy. Therefore, argued that the AO ought to have accepted the explanation of the assessee to assess the cash deposits in the hands of Smt. Subbayamma Reddy,....
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....t the AO has not made any effort to verify the correctness of the statement made by Smt. Marri Vijaya Lakshmi stating that Smt. Subbayamma Reddy is not an Income-tax assessee. The AO is not barred from making assessment in the hands of the person who is not assessed to tax if there is taxable income. Smt. Subbayamma Reddy also did not refuse or reject the statement made by the assessee and therefore we hold that when specifically made out the case that deposits were made by her mother-in-law Smt. Subbayamma Reddy who is the joint account holder, there is no justification to make the addition in the hands of the assessee, hence, we set aside the order of the ld. CIT(A) and delete the addition made by the AO. 7. Even otherwise, the assessee ....