JADAU JEWELLES & MFG. PVT LTD,JAIPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, JAIPUR

ITA 1688/JPR/2025Status: DisposedITAT Jaipur08 October 2026AY 2020-2110 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition of Rs. 3,51,000 under section 69A was not sustainable. The entire addition rested on two slips, which were considered 'loose notings' with limited evidentiary value, especially when uncorroborated and lacking crucial details like the payer, payee, purpose, or year. For Slip A, the dates (November 2020) indicated transactions belonging to FY 2020-21, not FY 2019-20, thus falling outside the assessment year under appeal. For Slip B, no year was mentioned, and the AO provided no reason for attributing it to FY 2019-20. The Tribunal found that the nexus with the assessee company was not established; the heading 'Trimurti Circle' only indicated a location, not receipt by the company. The signatory was unidentified, and no handwriting comparison or statement was obtained. Nothing in the form of cash, assets, or unrecorded stock was found, and the books of account were not rejected. The Tribunal noted that while the integrity of the electronic data was not in doubt, its probative worth was questionable. Relying on the principle that suspicion cannot replace proof and that loose sheets have little weight, the Tribunal deleted the addition. Consequently, Ground No. 5 regarding section 115BBE became infructuous. The legal grounds (reopening validity, notice issuance, Section 65B) were left undecided as the assessee succeeded on merits.

What were the facts?

The assessee, Jadau Jewellers & MFG Pvt Ltd., filed its return for AY 2020-21 declaring a loss. A survey under section 133A was conducted on 09.12.2020, during which data was extracted from an iPhone belonging to a director. Two handwritten slips were found in this data. Based on these slips, the AO initiated reassessment proceedings under section 147, issuing a notice under section 148 on 30.03.2024. The AO treated Rs. 3,51,000 as unexplained money under section 69A, taxed it under section 115BBE, and assessed the total income at Rs. 3,51,000. The CIT(A) upheld the AO's order. The assessee appealed to the ITAT.

What were the issues?

1. Whether the reassessment proceedings initiated under section 147 are void ab initio, considering the notice under section 148 was issued by the jurisdictional AO after 29.03.2022, when such notices could only be issued by the NFAC? 2. Whether the electronic data, specifically the two handwritten slips found on a pen drive, is inadmissible in evidence due to non-compliance with Section 65B of the Indian Evidence Act, as held by the Supreme Court in Anvar P.V vs. P.K.Basheer? 3. Whether the addition of Rs. 3,51,000 under section 69A on account of alleged transactions is sustainable, given the nature of the slips and the lack of corroborative evidence? 4. Whether the provisions of section 115BBE are applicable to the addition made. Assessee's contentions: The slips are 'dumb documents' without payer/payee details, purpose, or year. No statement was recorded, no cash or corresponding entry was found. The AO failed to establish the assessee's ownership of the money in FY 2019-20. The reassessment proceedings and notice issuance are legally flawed. The electronic data is inadmissible without a Section 65B certificate. Revenue's contentions: The lower authorities' orders are correct. The integrity of the data is established. The presumption under section 292C applies, and the assessee failed to discharge its burden of explanation.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(3),Section 147,Section 148,Section 148A,Section 69A,Section 115BBE,Section 292C,Section 65B,Section 34

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, JAIPUR

Before: Shri Kuldip Singh & Shri Prakash

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Assessee is directed against the order of the learned Commissioner of Income Tax (Appeals)-4, Jaipur [hereinafter referred to as "the learned CIT(A)"] dated 19.11.2025 arising out of the assessment order dated 19.03.2025 passed by the Assistant Commissioner of Income Tax, Central Circle-3, Jaipur (hereinafter referred to as "the AO") under section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for the assessment year 2020-21. Jadau Jewellers & MFG Pvt Ltd.

2.

The grounds of appeal raised by the Assessee before us in the memorandum of ap

The order continues below.

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