LA bound by IS Decision?

Just picked this case up and will represent tomorrow. Refusal of HB due to excess capital, client in threat of eviction.

Money transferred into her account by mum following sale of property, won’t go into details as we have a good case here with all the paper trails.

Just need to check - client was on IS shortly after money transferred into one of her separate accounts (not her main account). She did not declare it on the IS claim as it was her mum’s money. IS never asked her for bank statements etc.

LA are saying they are not bound by capital decision of DWP in this case as there is a reasonable doubt as to DWP’s decision.

Is this correct? I remember something on this….case law somewhere?

She is no longer on IS but was at date of LA’s decision.

Many thanks as always!