Senior citizen overturns nine-year tax assessment on fixed deposit and cash deposits
A widowed senior, Devi, successfully challenged a tax assessment that added Rs 2.42 lakh and Rs 1.5 lakh to her income after she failed to file an ITR.
Devi, an elderly widow, placed Rs 2 lakh in a two-year fixed deposit with Bank of Rajasthan in May 2007; the account yielded Rs 2.41 lakh upon maturity in 2009, and she later added Rs 1.06 lakh cash from her family pension. Her failure to file an income-tax return led the assessing officer to issue a Section 148 notice in March 2017 and, after no response, to assess her total income at Rs 5.15 lakh under Section 144. Following an unsuccessful appeal before the JCIT, she appealed to the ITAT Jaipur SMC bench, represented by Ashish Sharma.
The bench, consisting of Judicial Member T.R. Senthil Kumar and Accountant Member Prakash, heard the matter on August 6 2026 and delivered its judgment on August 21 2026, removing the Rs 2.42 lakh and Rs 1.5 lakh income additions. The tribunal found the fixed-deposit proceeds and cash deposits were her own savings, not undisclosed income, and emphasized that additions based on conjecture are unlawful. Tax experts highlighted the case as a caution for senior citizens to file even nil returns to avoid such disputes.
