ITAT Mumbai deletes ₹13.78 crore Section 69A addition due to lack of transaction-wise ownership nexus with assessee.
WhatsApp Cash Transfers Need Ownership Nexus
The ITAT Mumbai deleted a massive Section 69A addition of ₹13.78 crore, ruling that the Revenue failed to establish a transaction-wise ownership nexus between the assessee and alleged cash transfers via WhatsApp.
While the messages showed transfers, the department did not prove which amounts belonged to the assessee, how they were received, or that they were unexplained. Mere aggregation of digital data without linkage is insufficient.
The tribunal upheld the principle that additions must be based on evidence, not conjecture. Even in cases of suspected hawala, each transaction must be tied to the assessee. This decision curbs overreach in digital surveillance cases and reinforces due process.
Citations
- Section 69A, Income Tax Act
