WhatsApp images, piece of paper, without corroborative evidences , cannot be the basis of additions: ITAT Surat

 

 

ACIT Vs Shanker Nebhumal Uttamchandani (ITAT Surat) Appeal Number : ITA No. 321/SRT/2022

 

Facts:

1. The AO added Rs. 5.31 lakhs as unexplained expenditure on furniture, solely based on a WhatsApp image, without confirming whether the furniture was actually purchased.

2. Similarly, another addition of Rs. 3.00 lakhs under Section 69A of the Act, labeled as unexplained money, was made based on a digital image containing coded figures.

3. An addition was made of Rs. 17.02 crores which consists of Rs. 13.30 crores as unexplained money and Rs. 3.72 crores as unexplained interest. A photo containing certain details were found in the digital device of Naresh Agarwal, which led to the addition.

4. An addition of Rs. 34.56 crores was made on account of unexplained money, based on a page relating to land transactions found during the search. However crucial details such as the location of the land or the parties involved in the transactions were absent. Additionally, the document was not in the handwriting of the assessee or his family members.

ITAT Surat held as below:

1. The source of WhatsApp image was not investigated by Assessing Officer. Assessing Officer nowhere mentioned whether such image was confronted to the assessee during the search action or his statement was recorded for such image.

2. There is no material on record to suggest that figure relating to unexplained money was confronted with Naresh Agarwal (person on whose phone the images were found) nor addition is based on his statement.

3. On independent examination of facts relating to land transactions found on a piece of paper, we find that neither the Assessing Officer has brought any corroborative evidence nor further investigated the fact nor referred any corroborative evidence if collected during the search action by the Investigation Wing.

4. The appeal of the revenue is dismissed.

 

The copy of the order is as under:

 

1709181169-ITA 321 of 22_ACIT Vs Shankarbhai Uttamchandani (1)