Vinay Vohra & Co.

No Additions Without Valid 65B Certificate | ITAT

Best Taxation Service

We are a thriving firm of Chartered Accountants with the goal of providing a one-stop shop for all financial services.

Business Strategy & Growth

We believe integrity is the quintessential value that is the engine behind getting things done in the organization.

Highly Dedicated Worker

You can put your trust in the economic realm and expect the best outcome. With a strong team that possesses the necessary skill set .

Section 65B electronic evidence

Case Details: Deputy Commissioner of Income-tax vs. Balar Marketing (P.) Ltd. - [2026] 184 taxmann.com 480 (Delhi-Trib.)

Judiciary and Counsel Details

  • Anubhav Sharma, Judicial Member & Manish Aggarwal, Accountant Member
  • Rajiv Khandelwal, CA, Jaind Kumar Jaiswal & Gagan R. Khandelwal, Advs. for the Appellant.
  • Jitender Singh, CIT-DR for the Respondent.

Facts of the Case

The assessee was a private limited company. A search was conducted at the premises of the assessee company’s administrative head. As a result of the search, two mobile phones were seized. Analysis of digital data extracted from these phones revealed WhatsApp/SMS chats and certain images of one software.

Assessing Officer (AO) examined said images and chats, which allegedly reflected the exchange of cash tokens through a hawala network, and concluded that the assessee had effected cash sales to various parties. He made additions over the years based on such electronic data and statements. The matter reached before the Delhi Tribunal.

ITAT Held

The Delhi Tribunal held that the incriminating material relied upon by the Assessing Officer was not primary evidence, as the original software was neither found nor retrieved from any device. The material consisted solely of images allegedly shared for transaction acknowledgement. Further, WhatsApp chats contained only numerical figures, allegedly treated as coded entries, without independent narration of transactions.

The copy of the 65B certificate, purportedly issued by the administrative head, was merely a certificate of expertise regarding the due process adopted. At the same time, the data was backed up from the impugned devices to devices that were cloned. However, subsequently, as to how data was retrieved, and relevant incriminating evidence was extracted from devices by whom, had not been certified.

Since images on mobile devices constitute secondary evidence, any reliance on them necessitates strict adherence to the Board’s instructions for establishing authenticity. In the present case, the absence of a proper extraction report, a valid certificate under section 65B, and an adequately documented chain of custody rendered the electronic evidence inadmissible. Accordingly, additions made solely based on such unauthenticated material could not be sustained.

List of Cases Reviewed

List of Cases Referred to

The post No Additions Without Valid 65B Certificate | ITAT appeared first on Taxmann Blog.

source

1

Auditing - Assurance

2

Goods & Services Tax

3

Investment in India by Foreign Nationals & NRI's

4

Accounting & Bookkeeping

5

International Taxation

6

Startup Services

7

Mergers & Acquisition Advisory

8

Income Tax

9

Corporate Financial Services

10

Indian Business Advisory Service
Have Any Question?

Always willing to lend a hand and answer any questions you may have. It would be great if you could contact us.

Newsletter

Signup our newsletter to get update information, insight or news