Gurveer Singh Vs DCIT (ITAT Delhi)
Delhi ITAT: Uncorroborated WhatsApp Chats and Statements Cannot Sustain Addition Under Section 69A
The Delhi ITAT deleted an addition of ₹34.20 lakh made under section 69A, holding that mere WhatsApp chats and statements recorded during search, without independent corroborative evidence and without supplying the electronic material relied upon to the assessee, cannot form the basis of an addition.
A search was conducted on United Exim Pvt. Ltd., during which the assessee’s mobile phone was seized. The Assessing Officer alleged, on the basis of WhatsApp chats between the assessee and the company’s Chartered Accountant and an Excel sheet prepared by the AO, that the assessee had received cash of ₹34.20 lakh through the Chartered Accountant. The amount was accordingly brought to tax under section 69A read with section 115BBE.
The assessee contended that the alleged WhatsApp chats were never supplied despite a specific request during the assessment proceedings, no independent enquiry was conducted, no opportunity to cross-examine the Chartered Accountant was granted, and the Chartered Accountant himself had never admitted to transferring any cash to the assessee.
The Tribunal found that the assessment order relied substantially on statements, while the alleged WhatsApp chats themselves were neither reproduced nor made part of the assessment order, nor furnished to the assessee. This indicated that the Assessing Officer had largely relied upon the Investigation Wing’s report without independently examining the underlying electronic evidence.
The ITAT further observed that even if the strict requirements of section 65B of the Evidence Act were assumed to be inapplicable to income-tax proceedings, the Department was nevertheless expected to substantially comply with the CBDT’s Digital Evidence Manual, 2014, which prescribes the procedure for collection, preservation, authentication and reliance upon electronic evidence. In the present case, these safeguards were not followed.
Holding that uncorroborated statements unsupported by the underlying electronic evidence cannot sustain an addition, the Tribunal concluded that the Revenue had failed to establish the alleged cash transactions. Accordingly, it deleted the addition of ₹34.20 lakh and allowed the assessee’s appeal.
Cases Discussed
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the Assessee against the order dated 09.06.2025 of the Ld. Commissioner of Income Tax(Appeals)-3, Noida (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN No : ITBA/APL/M/250/2025-26/1076845981(1) arising out of the assessment order dated 20.03.2024 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT, Central Circle-II, Noida, for AY: 2022-23.
