Vikas Vilas Rasal Vs ACIT (ITAT Mumbai)
Additions Based on WhatsApp Chats Third-Party Statements Deleted – No Evidence, No Cross-Examination
Mumbai ITAT delivered a comprehensive ruling deleting multiple additions made during search assessment, emphasizing that unverified digital evidence and third-party statements cannot sustain additions without corroboration.
The Tribunal held:
- WhatsApp chats have no evidentiary value without proper Section 65B certification and cannot be sole basis for addition
- Addition of ₹15 lakh (alleged cash with Vilas Pawar) was deleted as:
- No linkage established with assessee
- Messages did not indicate assessee’s ownership of funds
- No independent inquiry conducted
- Major addition relating to Parekh Ornaments (₹1.20 crore sustained by CIT(A)) was fully deleted because:
- Based on retracted statements u/s 132(4) & third-party statements
- No cross-examination provided despite request
- No supporting seized material furnished to assessee
- Assessee provided plausible explanation with documentary backing
- Professional income of spouse (₹16.67 lakh):
- Cannot be taxed again in assessee’s hands
- Double taxation not permissible, especially when already declared and accepted in spouse’s return
- Agricultural income issues:
- Assessee proved agricultural activities with land records, bills, and evidence
- Only 10% estimation sustained, rest deleted
- Additions in respect of family members’ agricultural income fully deleted as baseless
The ITAT emphasized:
- Statements without corroboration = weak evidence
- Cross-examination is crucial where reliance is placed on third-party statements
- Additions cannot be made on presumption, suspicion, or incomplete evidence
Accordingly:
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