DCIT Vs Riddhesh Girishbhai Bhandari (ITAT Ahmedabad)
ITAT Ahmedabad Quashes ₹3.68 Cr Additions on WhatsApp & Loose Sheets – No Nexus with Assessee; Tribunal Rejects Revenue’s Guesswork-Based Additions
Revenue appealed against CIT(A)’s order deleting additions of over ₹3.68 crore made during assessment pursuant to a search in the AGL Group (26.05.2022), which also covered the assessee’s residence. AO had assessed income at ₹13.31 crore against returned income of ₹9.58 crore, making additions:
- Unsecured loan treated as unexplained money u/s 69A – ₹1,47,31,479/-, plus interest of ₹4,79,773/-, based on WhatsApp message “ASTRON INT A” found in third party’s phone & a loose document from another person’s residence.
- Addition of ₹2,16,50,000/- u/s 69A on basis of Excel file “General new” & diaries seized from AGL Group employees, allegedly showing cash advances.
- Ad hoc addition of ₹4,33,738/- towards commission income, assuming assessee charged higher commission in his Angadia business.
CIT(A) deleted all additions, holding that (i) seized documents were not found from assessee, hence presumption u/s 132(4A)/292C did not apply, (ii) AO failed to prove ownership of money, (iii) taxing same transaction in both assessee & Astron Paper & Board Mill Ltd was double taxation, (iv) retracted statements & absence of cross-examination weakened Revenue’s case, & (v) commission addition was based on mere assumption (₹500/lakh instead of admitted ₹50/lakh).
