From mint · Kirti Jha · · 1m 20s
ITAT rejects ₹50 lakh LIC policy claim
Woman's HUF income claim for ₹50 lakh LIC policy rejected by ITAT.
In brief
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 husband's HUF. Originally reported by mint.
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.
What matters most
ITAT upheld ₹50 lakh tax addition after woman failed to prove ₹50 lakh came from her late husband's HUF.
