# ITAT rejects ₹50 lakh LIC policy claim

> Woman's HUF income claim for ₹50 lakh LIC policy rejected by ITAT.
- Title: ITAT rejects ₹50 lakh LIC policy claim · mint | Shortify
- Summary: Woman's HUF income claim for ₹50 lakh LIC policy rejected by ITAT. ITAT upheld ₹50 lakh tax addition after woman failed to prove ₹50 lakh came from her late…
- Keywords: itat, lic policy, huf, tax addition, income tax, agricultural income, maturity proceeds, assessing officer, taxpayers, financial year, news, india
- Source: mint — https://livemint.com/money/personal-finance/bought-a-50-lakh-lic-policy-on-4-81-lakh-income-why-itat-rejected-the-woman-s-claim-and-upheld-the-tax-addition-11792516737533.html
- Author: Kirti Jha
- Published: 2026-10-20T17:29:55+00:00
- Read time: 1 min
- Topics: itat, lic policy, huf, tax addition, income tax, agricultural income, maturity proceeds, assessing officer, taxpayers, financial year, news, india
## ITAT ruling on tax addition
ITAT upheld ₹50 lakh tax addition for unexplained investment after woman claimed funds from late husband's HUF.
## Investment claim details
Taxpayer argued ₹50 lakh came from agricultural income via orchard owned by her late husband's HUF.
## ITAT rejection reason
ITAT rejected claim due to lack of documentary evidence for funds movement and source.
## Investment timeline
₹5 lakh each received by LIC agent on 7 and 13 June 2008, with ₹10 lakh invested on 19 June 2008.
## HUF income claim
Taxpayer claimed sufficient agricultural income to fund ₹50 lakh policy but failed to show books of account or sales records.
## Policy ownership issue
Policy was in taxpayer's name as life assured and maturity beneficiary, not HUF.
## Protective taxation plea
Taxpayer argued addition should be made on protective basis until HUF ownership confirmed.
## ITAT's decision
ITAT upheld ₹50 lakh addition as unexplained investment under Section 69 of Income Tax Act, 1961.
## Taxpayer's consequences
Taxpayer must now explain source of funds for ₹50 lakh investment to avoid further tax issues.
## Key takeaway

ITAT upheld ₹50 lakh tax addition after woman failed to prove ₹50 lakh came from her late husband's HUF.