ITAT reversed additions made under s.69A based on seized digital ...

Tax Additions Under Section 69A Reversed: Digital Ledger With Mixed Entries Cannot Be Sole Basis Without Supporting Evidence

March 5, 2025

Case Laws     Income Tax     AT

ITAT reversed additions made under s.69A based on seized digital ledger "Hazir Johri." The disputed ledger "Sanmati 1586" contained merged entries of multiple unrelated parties alongside assessee's transactions. Revenue authorities failed to provide concrete evidence linking assessee to all transactions or substantiate the nature of entries where assessee was named. No corroborative documentation like bills, vouchers, or stock registers established cash sales attribution to assessee. Following precedent where similar merged ledgers were deemed insufficient basis for additions, ITAT held that reliance on Hazir Johri software alone cannot sustain additions without supporting evidence. Assessee's explanation was considered plausible, and additions were deleted.

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