ITAT Mumbai deletes ₹5 lakh addition, finding WhatsApp message and third-party statement insufficient to prove unexplained cash receipts.
“5kg Mangoes” Note Insufficient for Section 69A Addition
The ITAT Mumbai deleted a Section 69A addition of ₹5 lakh, holding that a WhatsApp message stating “5kg mangoes” and an untested third-party statement could not serve as evidence of unexplained cash receipts.
The tribunal emphasized the lack of corroborative evidence, authentication, or ownership nexus. The Revenue failed to establish that the message referred to cash or involved the assessee.
Surveillance material and informal messages cannot be used to impute income without credible linkage and examination.
This decision sets a high bar for using digital communication in tax proceedings. It upholds evidentiary standards under the Income Tax Act. Tax authorities must produce authenticated, relevant evidence with clear nexus. Practitioners should challenge speculative additions based on ambiguous digital notes.
Citations
- Section 69A, Income Tax Act
