Super Cassettes Industries Pvt. Ltd. Vs DCIT (ITAT Delhi)
WhatsApp Excel Sheets Not Gospel Truth -Dumb Documents Can’t Create Tax Liability: Suspicion is No Substitute for Evidence-ITAT Delhi Deletes Huge Additions in Super Cassettes Appeals
Assessee Company engaged in distribution of music & film production, was subjected to search u/s 132 on 29.11.2018. Consequent assessments were framed u/s 153A for AYs 2013-14 to 2018-19 & u/s 143(3) for AY 2019-20. AO made large additions alleging diversion of income abroad, bogus expenses & undisclosed cash receipts. Both Revenue & Assessee filed cross appeals before Tribunal.
Income retained in BDML (Dubai):
AO held that BDML was a façade to divert SCIPL’s royalty income to a tax-free jurisdiction. CIT(A) deleted the additions after noting independent functioning, contracts with global players & board meetings abroad. Tribunal observed that identical issue had already been decided in Assessee’s favour for AYs 2007-08 to 2012-13 & followed the same, deleting additions of ₹2.43 Cr (AY 2013-14) & ₹7.12 Cr (AY 2014-15)
Unaccounted cash receipts (Excel sheet/WhatsApp with Sonal):
AO relied on an Excel sheet shared on WhatsApp indicating cash receipts from singers, making additions of ₹14.10 Lakh (AY 2015-16), ₹1.25 Cr (AY 2016-17) & ₹1.12 Cr (AY 2017-18). CIT(A) deleted the additions treating the sheet as a “dumb document” since no corroborative material or statements were recorded. Tribunal upheld this, citing CIT v. D.K. Gupta & Ashwani Kumar v. ITO
