SHRI VIKAS VILAS RASAL,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 34(3), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH MUMBAI BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER HON’BLE SHRIBIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 7637/Mum/2025 (Assessment Year: 2017-18) Vikas Vilas Rasal Assistant Commissioner of Flat no. 1302, Bldg no. 11, Income Tax, Circle- 34(3), Sarvodaya CHS, Khernagar, Vs. Mumbai Bandra (East), Mumbai Room no. 832, 8th Floor 400051 KautilyaBhavan, C-41 to C- 43, G-Block BandraKurla Complex, Bandra (East), Mumbai 400051. PAN/GIR No. AAUPR5121K (Applicant) (Respondent) Assesseeby ShriRakesh Joshi Revenue by Shri Vivek Perampurna (CIT-DR) Date of Hearing 21.01.2026 Date of Pronouncement 20.04.2026 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeal has been filed by the assessee challenging the impugned order dated 31.08.2025 passed u/s 250 of the Income Tax Act, 1961 ('the Act'), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2017-18. The following grounds are reproduced below: Ground no. 1: On the facts and circumstances of the case as well as in law the Ld. CIT(A) has erred in confirming the addition of 10% of the declared agricultural income, amounting to Rs. 86,458/- by estimating alleged inflation in

ITA No. 7637/Mum/2025 Vikas Vilas Rasal agricultural income, without any cogent material or evidence to substantiate such estimation. Ground no. 2: On the facts and circumstances of the case as well as in law the Ld. CIT(A) has erred in confirming action of the Ld. Assessing Officer in making an addition of Rs. 66,82,000/- on account of transaction with Vilas Pawar as alleged undisclosed income of the Assessee, without considering the facts and circumstances of the case. Ground no. 1 2. Ld. AR submitted at bar the he does not want to press this ground. Consequently, considering the statement made by the ld. AR, ground no. 1 raised by the Assessee stand dismissed as not pressed. Ground no. 2 3. This ground raised by the Assessee relates to challenging the order of Id. CIT (Appeal) in confirming the addition of Rs. 66,82,000/- made by the AO on account of transaction with Mr. Vilas Pawar. 4. We have heard the counsels for both parties, perused the material placed on record, the judgments cited before us, and the order passed by the Revenue Authorities. From the records, we noticed that during the course of search proceedings, some whatsapp communication with Vilas Pawar from the I-phone of the Assessee was found by the department. On the basis of the said whatsapp communication, the department alleged that the Assessee has kept his unaccounted income in the form of cash with Shri Vilas Pawar and accordingly made the addition of Rs. 2

ITA No. 7637/Mum/2025 Vikas Vilas Rasal 66,82,000/- as alleged Undisclosed income. Summary of these transaction reproduced by AO on page 24 of the assessment order. 5. At the outset we noticed that the message exchanged on whatsapp did not have any evidentiary value as has been held by the Hon’ble Apex Court more particularly when no certification u/s 65B of the Indian Evidence Act 1972 was obtained by the search team on seizer of digital evidence. Thus on this ground no additions can be made, in this regard reliance has been placed on the following decision; a. Saravana Selvarathnam Retalls (P.) Ltd. CIT (160 Taxmann.com 287) (Madras); b. ACIT Vs. Prashant Prakash Nilawar (2024) ITA 5689/Mum/2024) (Mumbai) c. A Johnkumar Vs. DCIT (ITA 3092/Chny/2019) (Chennai) 6. Moreover as per the record, the Assessee was known to Vilas Pawar from last 6 to 7 years. He has good knowledge of financial matters such as rate of gold-silver, dollar, other currencies, Assessee used to take his advice from him from time to time. He used to arrange loans for various persons from various sources for small commission for the services rendered. Assessee used to recommend his name to his friends. However, Assessee never had any transactions with him. Evenno evidence was found during the course of search that the Assessee had any transaction with Vilas Pawar. The Assessing Officer only on the basis of the whatsapp communication alleged that the Assessee had 3

ITA No. 7637/Mum/2025 Vikas Vilas Rasal kept his unaccounted income in the form of cash with Shri Vilas Pawar, but nowhere in the communication it was mentioned that the said amount was collected by the parties belongs to the Assessee. In the said whatsapp there is no reference of assessee’s name or any other family member of the assessee. It had nothing to do with the Assessee. Thus the Assessee is nowhere involved in these transaction. Even the department failed to produce any evidence which prove that the Assessee had transaction with Vilas Pawar. Thus, without doing further enquiry on the said transaction, the Assessing Officer simply alleged that the Assessee kept his unaccounted income in the form of cash with Shri Vilas Pawar, which is not tenable under the Act. 7. Ld CIT(A) discussed this issue on page 21 para 8.4.3 and confirmed the addition on the plea that in the statement assessee has admitted the said amount. He has not appreciated the fact that there was no section 65B certification for seizure of digital evidence nor any third party enquiry was carried out by the AO. 8. Therefore, considering the totality of the facts of the present case and also considering the decision in our case bearing ITA No. 7636/Mum/2025wherein on the identical set of facts the additions were deleted. Thus keeping in view the above facts and also considering the decision in ITA no. 7636/Mum/2025 in Assessee’s own case we allowed this ground raised by the Assessee. 4

ITA No. 7637/Mum/2025 Vikas Vilas Rasal 9. In the net result appeal of the Assessee stand partly allowed.

Order pronounced in the open court on 20.04.2026

Sd/- Sd/- (BIJAYANANDA PRUSETH) (SANDEEP GOSAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 20/04/2026 Ankit, PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलार्थी / The Assessee 1. प्रत्यर्थी / The Respondent. 2. संबंधित आयकर आयुक्त / The CIT(A) 3. आयकर आयुक्त(अपील) / Concerned CIT 4. धिभागीय प्रधतधिधि, आयकर अपीलीय अधिकरण,मुम्बई/ DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy//

उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, मुम्बई / ITAT, Mumbai