Addition not justified merely based on whatsapp images without corroborative evidence
Shri Shanker Nebhumal Uttamchandani vs A.C.I.T., Central Circle-4, Surat. [ITA No. 321/SRT/2022 (AY: 2020-21)]
The Hon’ble ITAT Surat carefully reviewed the details of the case, where additions were made based on WhatsApp images found on an iPhone. It was observed that the Assessing Officer did not mention in the assessment order whether the images were received by the assessee or sent by them. Furthermore, the source of the images was not investigated by the Assessing Officer. There was no mention of whether the images were shown to the assessee during the search action or if their statement was recorded regarding the images. Due to the lack of supporting evidence, the ITAT found no valid reason for the additional amounts. The Hon’ble Supreme Court, in the case of Common Cause v. Union of India (2017) 394 ITR 220 SC, also stated that loose sheets of papers are irrelevant as evidence and not admissible under section 34. Therefore, they uphold the CIT(A)’s order, which deleted the demand, as valid.
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