LEKCON INFRASTRUCTURE PRIVATE LIMITED,HYDERABAD vs. ACIT, CENTRAL CIRCLE-3(2), HYDERABAD
Facts
A search operation led to the seizure of loose sheets (page 39 from Annexure A/LKN/OFF/01) from an employee's WhatsApp messages, based on which the A.O. made additions of Rs. 9.76 crores for unexplained cash loans and interest, assuming an 18% interest rate. The assessee contested, arguing the document was "dumb," unsigned, lacked nexus, and the digital evidence was inadmissible without a Section 65B certificate. The CIT(A) largely sustained the additions, applying Section 292C.
Held
The Tribunal ruled that the digital evidence (WhatsApp messages) was inadmissible without a Section 65B certificate under the Indian Evidence Act, 1872, and lacked corroborative evidence. It found the A.O. misinterpreted the document, which indicated cash receipts, not cash loans given, and based additions on assumptions without discharging the primary onus of proof. Thus, the document was deemed unreliable for making additions.
Key Issues
Whether additions based on digital evidence (WhatsApp chats) without a Section 65B certificate are valid, and if an unsigned, ambiguous seized document can form the basis of additions for unexplained cash loans without corroborative evidence.
Sections Cited
Section 132, Section 132(4), Section 153A, Section 153D, Section 292C, Section 68, Section 69C, Section 115BBE, Section 65B of the Indian Evidence Act, 1872
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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad
आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The Assessee : 1. M/s. Lekcon Infrastructure Private Limited, 3- 6-9/12, Narsingi Heights, Rajendra Nagar Mandal, Hyderabad – 500089, Telangana. 2. Shri Purushotham Naidu Lekkala, 3-6-9/12, Narsingi, Manchirevula, Hyderabad, K.v. Rangareddy – 500089, Telangana. 2. रधजस्व/ The Revenue : The ACIT/DCIT, Central Circle – 3(2), Hyderabad. 3. The Principal Commissioner of Income Tax , Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file
आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Hyderabad