Ajaram Adararam Mali Vs DCIT (ITAT Mumbai)
ITAT Mumbai Deletes Section 69 Additions: Third-Party Excel Sheets & Statements Without Corroboration Have No Evidentiary Value
In a crucial ruling, the ITAT Mumbai held that additions under Section 69 cannot be sustained solely on the basis of third-party statements and excel sheet data found during search, without independent corroborative evidence linking the assessee.
The case involved alleged cash (“on-money”) payments for property purchase based on data recovered from a pen drive belonging to an employee of the developer group. The assessee denied any such payments.
The Tribunal emphasized:
- No incriminating material was found from the assessee.
- Alleged evidence (excel sheets, statements) was not confronted nor cross-examination allowed, violating natural justice.
- Unverified electronic data and third-party statements lack evidentiary value unless corroborated.
It further held:
- Admission of on-money by the developer does not automatically implicate the buyer.
- Reliance on third-party data without nexus to assessee is legally untenable.
- Consistent ITAT rulings in similar Rubberwala group cases were followed.
Result:
- Entire additions (₹17.61 lakh across years) deleted
- Appeals of assessee fully allowed
A strong reaffirmation that “no addition without evidence”-mere third-party data or statements, without confrontation and corroboration, cannot justify additions under Section 69.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
