Addition u/s. 68 merely based on SMS or WhatsApp messages without corroborative evidence unsustained

Atul Tantia Vs DCIT (ITAT Kolkata)

ITAT Kolkata held that addition towards undisclosed income u/s 68 of the Income Tax Act merely based on the SMS or WhatsApp messages without any corroborative evidences is unsustainable in law.

Facts- A search and seizure u/s 132 of the Act was conducted on 12/09/2017 on GPT Group of cases including the assessee. During the course of search and seizure, mobile data was retrieved and printout of SMS were taken out from the mobile of Shri Atul Tantia. As per the mobile messages, unaccounted cash transactions were carried out between concerns of GPT Group and others. The SMS and WhatsApp printouts were suggestive of instructions of Shri Shivratan Sharma and Shri Atul Tantia. Thereafter, statements were recorded of Shri Atul Tantia, in which he never admitted that the money either belonged to him or exchanged hands at his instructions. The Assessing Officer finally added the same to the income of the assessee as undisclosed income u/s 68 of the Act as the assessee did not offer any plausible explanation in the assessment framed u/s 143(3) of the Act dt. 30/12/2019.

Aggrieved the assessee carried the matter before the ld. First Appellate Authority. The ld. CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.

Conclusion- Held that in the WhatsApp messages, it was never stated that the money belonged to the assessee but it was stated to be transactions between the concerns/parties of GPT Group and others. In our considered view the addition cannot be sustained as it based on the SMS or WhatsApp messages without any corroborative evidences.

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