DCIT Vs Balmukund Sponge And Iron Private Limited (ITAT Kolkata)
In a consolidated batch of appeals concerning Balmukund Sponge & Iron Pvt Ltd, Balmukund Cement & Roofings Pvt Ltd & Balmukund Lease Fin Pvt Ltd for AYs 2015-16 to 2023-24, Tribunal examined additions based on seized loose papers, WhatsApp chats, alleged bogus purchases & unsecured loans. AO invoked s.69A on rough jottings found in document BSIPL/01 treating ₹2.87 cr as unexplained money. CIT(A) had re-characterised them as suppressed sales & applied GP of 7.84%. Tribunal held that seized paper itself mentioned them as investments, not cash receipts of Assessee, that cash loans/investments cannot be assessed as income, & that document must be read as a whole. Relying on Navjivan Oil Mills (Guj HC) & Premji Bhuralal Gala (Mum ITAT), entire addition including the GP element was deleted.
For AYs involving WhatsApp chats of directors/employees, AO added entire chat amounts u/s 69A & CIT(A) applied GP percentage. Tribunal held that WhatsApp chats without corroborative material cannot be the basis of income; s.69A presupposes real money found with Assessee, which was absent. Presumption u/s 292C is rebuttable & applies to the person from whose possession documents are found. As chats did not specify whether entries were receipts or payments & no link to Assessee was established, entire addition was deleted.
