Applicability of provisions of the Evidence Act, with respect to digital evidence, were applicable to Income-tax proceedings?

DCIT Vs Balar Marketing Pvt. Ltd. (ITAT Delhi) Conclusion: In the absence of proper compliance with Section 65B and failure to establish a clear chain of custody, the digital evidence relied upon by the Revenue lacked legal admissibility and evidentiary value. Mere reliance on extracted data without demonstrating its authenticity and integrity could not sustain an assessment. Accordingly, the assessment framed on such unreliable material was liable to be set aside. Held: During the search proceedings various electronic devices such as Hard disks, Mobile phones, Pen drives, etc were found and ...