The matter of ACIT Vs Shanker Nebhumal Uttamchandani, as decided by ITAT Surat, emphasizes the importance of substantial proof in tax assessments, especially concerning additions incurred based on digital device data. The Assessing Officer (AO) had incurred the additions to the taxpayer’s income based on particulars discovered in the digital device at the time of the investigation.
The tribunal noted that the AO exclusively relied on WhatsApp images without confirming the authenticity of the transactions depicted therein. AO added Rs. 5.31 lakhs as unexplained expenditure on furniture, only based on a WhatsApp image, without ascertaining whether the furniture was purchased.
Alike another addition of Rs. 3.00 lakhs Under Section 69A of the Act, labelled as unexplained money, was made which is according to a digital image containing coded numbers. However, the Tribunal remarked that the AO erred in summoning or recording the statement of the sender cited in the image, Vijay Jain.
The Tribunal concluded that these additions do not have the substantiation and were incurred only on presumption, without supporting proof.
The Tribunal addressed an addition of Rs. 34.56 crores for unexplained money, founded on a page discovered at the time of the investigation. Even after the presumption of AO for the transaction of land, the Tribunal did not discover any evidence connecting the taxpayer with the transactions cited in the document.
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The Tribunal emphasized the absence of particulars like the land location or the parties concerned in the transactions. The document was not in the handwriting of the taxpayer or his family members, weakening the basis for the addition.
The Tribunal highlighted the requirement for corroborative proof and dismissed the addition, regarding the document as a “dump document” without substantial evidentiary value.
The matter demonstrates the importance of the thorough search and substantiated proof in tax assessments, alerting against additions only on the grounds of digital device data or documents lacking verifiable particulars.
It substantiated the principle that assessments ought to be grounded in factual evidence to keep justice and prevent arbitrary additions to the income of the assesses.
| Case Title | ACIT Vs Shanker Nebhumal Uttamchandani |
| Case Number | ITA No. 321/SRT/2022 |
| Date | 28.02.2024 |
| Department Represented By | Shri Ravinder Sindhu, CIT-DR |
| Assessee Represented By | Shri Ramesh Malpani, C.A. |
| Surat ITAT | Read Order |
