2023 (9) TMI 1664

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..... nly on the basis whatsapp chats which has no evidentiary value in absence of other collaborative adverse material against the assessee showing part payment of salary in cash to the said two employees. >AO has proceeded to make addition on the basis of whatsapp chats between two employees and their statements only and no other documentary evidence or adverse positive material has been found and searched during the course of search and seizure operation. >We are unable to see any distinction between both the sets of employees. The whatsapp chats standalone basis is not having valid evidence to support the action of making addition u/s. 69C - Appeal of the assessee is allowed.
>SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND DR. B.R.R. K .....

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..... . >3. The learned AR submitted that the facts and circumstances of the case, Ld. CIT(A) has erred both on facts and in law in sustaining addition to the extent of Rs. 5,75,000/- u/s 69C being part salary alleged to be paid in cash to employees merely on the basis of unsubstantiated whatsapp conversation between two employees by ignoring the settled law that whatsapp chats has no evidentiary value. He also submitted that the facts and circumstances of the case, Ld. CIT(A) has erred both on facts and in law in sustaining addition to the extent of Rs. 5,75,000/- u/s 69C being part salary alleged to be paid in cash to employees merely on the basis of statement recorded of employees without affording the appellant an opportunity of cross exam .....

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..... deleted. >5. Replying to the above, the ld. Senior DR supported the orders of the authorities below and submitted that there was sufficient evidence showing unaccounted salary payment to the employees of company therefore the AO was right in making addition u/s. 69C of the Act. >6. On careful consideration of above submissions, from assessment order we note that the Assessing Officer has made addition of Rs. 9,50,000/- on account of unaccounted payment of salary in cash to four employees u/s. 69C of the Act. The ld. CIT(A) deleted amounts pertaining to Shri Dhananjay & Ms Yamini but confirmed the addition pertaining to Ms Seema Dutta and Aman Sehgal amounting to Rs. 5,75,000/- by relying on the statements of said two employees. The b .....

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