ACIT Vs Vetrivel Minerals (VV Minerals) (Madras High Court)
Admissibility of Electronic Evidence in Income Tax Proceedings: Inapplicability of Section 65B of the Indian Evidence Act and Section 63 of the Bharatiya Sakshya Adhiniyam:- In the context of Income Tax assessment proceedings, with reference to the latest ruling of the Madras High Court in The Assistant Commissioner of Income Tax v. Vetrivel Minerals & Ors. (WA(MD) Nos. 119 to 123 of 2022, decided on April 30, 2025):
This article briefly analyses the evidentiary value of electronic records, particularly WhatsApp messages and data extracted from digital devices, in the context of income tax assessments and appellate proceedings. While the Madras High Court in Vetrivel Minerals (2025) recently ruled that Section 65B of the Indian Evidence Act and Section 63 of the Bharatiya Sakshya Adhiniyam (BSA) do not apply to such quasi-judicial forums, several judicial and tribunal rulings across India—including those by the Supreme Court and various ITAT benches—have held that digital records require proper certification under Section 65B(4) to be admissible. The article offers a harmonised view reconciling these divergent lines of authority and provides clarity on practical standards for admissibility.
The increasing reliance on electronic evidence—WhatsApp chats, emails, data from hard drives, and pen drives—has created a complex and evolving jurisprudence on evidentiary admissibility in tax proceedings. At the heart of this debate lies the applicability of Section 65B of the Indian Evidence Act, 1872, or its successor Section 63 of the Bharatiya Sakshya Adhiniyam, 2023, to income tax assessments, searches, and appellate adjudication.
