Electronic evidence admissibility under section 65B can defeat an addition where digital records lack proper certification and corroboration.

An addition based on alleged cash interest payment from a seized pen drive could not be sustained where the electronic material failed the admissibility requirements under section 65B of the Indian Evidence Act, 1872. The Tribunal noted that the digital record and extracted cash book lacked the necessary certification, and there was no independent corroboration to support the alleged undisclosed payment. On that basis, the electronic material could not be used against the assessee, and the addition was deleted.

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Issues: Whether the addition made on account of alleged cash interest payment could be sustained when it was founded on electronic material from a pen drive and the required certification for admissibility of electronic records was found deficient.

Analysis: The addition was based on a seized pen drive and the unaccounted cash book extracted from it. The order records that the assessee disputed the evidentiary value of the digital material, and the Tribunal relied on the legal position governing electronic records under section 65B of the Indian Evidence Act, 1872. It was noticed that the conditions for admissibility of electronic evidence, including the certificate requirements, were not satisfied. In the absence of valid admissible digital evidence and without independent corroboration, the material relied upon for the addition could not be used against the assessee.

Conclusion: The addition towards alleged interest payment was deleted and the issue was decided in favour of the assessee.

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