ACIT Vs Jayesh Umakant Manania (ITAT Mumbai)
Dumb WhatsApp Scribbles Can’t Create Black Money: ITAT Mumbai Upholds Deletion of ₹70 Lakh u/s 69
Mumbai ITAT dismissed the Revenue’s appeal and upheld deletion of ₹70,00,000 added u/s 69 in the case of Jayesh Umakant Manania for AY 2011-12.
The reassessment was framed on the basis of third-party electronic images / loose notings allegedly recovered from the mobile phone of Shri Pankaj Goshar, purportedly indicating cash payments for booking of flats in a project of M/s Kalyanji Velji HUF. The AO treated the alleged cash component as unexplained investment of the Assessee.
The CIT(A) deleted the addition holding that the entire case of the Revenue rested on uncorroborated third-party digital material, which was neither seized from the Assessee nor in his handwriting, and that both the alleged recipients categorically denied receipt of any cash. The CIT(A) also relied on coordinate bench decisions in identical group matters, where such notings were held to be “dumb documents” incapable of sustaining additions.
Upholding the CIT(A), the Tribunal noted that the issue stood squarely covered in the Assessee’s own case for AY 2012-13 on identical facts, involving the same seized material, same parties and same project. The Revenue failed to point out any distinguishing feature. Applying the principle of judicial consistency & discipline, the Bench held that additions cannot be sustained merely on the basis of loose digital scribbles without corroboration.
Accordingly, the Revenue appeal was dismissed, and the deletion of ₹70 lakh u/s 69 was confirmed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
