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Facts
The assessee filed an appeal against the order of the CIT(A). The appeal was based on the submission that the assessment order, though dated 24.09.2021, was served only on 18.10.2021, making the proceedings time-barred. An addition of Rs. 8,57,000/- was made by the AO based on WhatsApp messages found on the assessee's son's phone.
Held
The Tribunal held that the addition made by the AO and confirmed by the CIT(A) deserves to be deleted. It was observed that the WhatsApp messages were not supported by any other documentary evidence and the transactions were not found in the assessee's WhatsApp, but in that of her son, who is an independent assessee.
Key Issues
Whether the addition made solely on the basis of WhatsApp messages, without supporting documentary evidence and from an independent assessee's phone, is valid.
Sections Cited
IT Act sections
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Income Tax Appellate Tribunal, SMCBENCH,RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
ĮċĊĭŊįēćıकीओरसे/Assessee by : Shri Devesh Poddar, Adv. �ȡ�è��ȧj � ȯ/Revenue by : Shri Khubchand Pandya, Sr.DR Ǖ��ȡ_�ȧ�ȡ�ȣ�/ Date of Hearing : 30/04/2025 �Ȫ��ȡ�ȧ�ȡ�ȣ�/Date of Pronouncement : 30/04/2025 आदेश/ O R D E R Per Bench: Thisis an appeal filed by the assessee against the order of the ld. CIT(A), Patna-3, dated 29/12/2023, passed in ITBA/APL/S/250/2023- 24/1059209271(1) for the assessment year 2020-2021.
Shri Devesh Poddar, Advocate appeared on behalf of the assessee. Shri Khubchand Pandya, Sr. DR appeared on behalf of the revenue.
It was submitted by the ld. AR that the assessment order is dated 24.09.2021 but the same has been served only on 18.10.2021. It was the submission that the proceedings which are opened even as on 10.10.2021 and consequently the assessment itself is time barred. It was further submitted that the assessee got a good case on merit also and he would like to argue on merit of the case. It was the submission that the only addition on merit was an addition of Rs.8,57,000/- made by the AO on the basis of certain whatsapp messages found in the mobile phone of assessee’s son namely Shri Manish Agarwal. It was submitted that there was an assessment in the case of Shri Manish Agarwal also and this addition has not been considered in his hands. It was the submission that no documentation or evidence connecting to whatsapp messages to the assesse has been found nor produced by the revenue. It was the submission that the addition as made by the AO and as confirmed by the ld. CIT(A) deserves to be deleted. Ld. AR also relied upon the decision of the coordinate bench of the Tribunal in the case of Mr. A Johnkumar Vs. DCIT, passed in dated 13.05.2022 as also the decision in the case of Shanker Nebhumal Uttamchandani, reported in [2024] 161 taxmann.com 536 (Surat-Trib.)[28.02.2024), wherein both the coordinate benches of the Tribunal have held that whatsapp messages cannot be the sole foundation of an addition unless it is supported with other documentary evidence.
In reply, ld. Sr. DR vehemently supported the orders of the ld. Assessing Officer and ld. CIT(A).
We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessment has also been done in the case of Shri Manish Agarwal, the son of the assesse, in whose whatsapp the said financial transactions have been found. Admittedly, none of these transactions is relating to the assesse. Further no documentation nor documentary evidence connecting these transactions to the assesse has also been found or produced by the revenue. In these circumstances, as the transaction has not been found in assessee’s whatsapp but has been found in the assessee’s son’s whatsapp, who is an independent assesse and as such message is not supported nor corroborated with any documentary evidence, no addition on the basis of such whatsapp message can be made in the hands of the assesse. Thus, the addition made by the AO and confirmed by the ld.CIT(A) stands deleted.
In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 30/04/2025.