No addition permissible on the basis of WhatsApp chats or screenshots as it lack evidentiary value without section 65B certification and corroboration: ITAT
Recently, Mumbai ITAT in the case of DCIT v. Niru Dhiren Shah (ITA No. 4294/Mum/2025) was concerned with the issue of evidentiary value of WhatsApp Chats in Tax Proceedings.
Let us have a Short Overview of the Case: –
A search was conducted on the assessee and a connected party in relation to a property sale. The AO added Rs. 3.16 crores as unexplained money under Section 69A, alleging receipt of cash over and above the registered sale price. The addition was based solely on a WhatsApp Chat between the buyer’s son and his accountant, which allegedly indicated a higher market value.
Tribunal’s Rulings:
The ITAT held that the WhatsApp Chat was a third-party communication that neither mentioned the assessee nor the specific property.
No corroborative evidence or cash was found during the search. Further, the screenshot was not supported by a certificate under section 65B of the Indian Evidence Act, making it inadmissible.
The addition was therefore based on mere conjecture and without any verifiable proof. Accordingly, the Tribunal deleted the addition of Rs. 3.16 crores made under section 69A.
Key Takeaway:
1. WhatsApp chats or screenshots lack evidentiary value without section 65B certification and corroboration.
2. Additions under section 69A must rest on tangible, verifiable evidence, not presumptions.
3. Digital communications cannot, by themselves, justify tax additions.
The copy of the order is as under:
