Electronic evidence in tax assessments requires Section 65B certification or corroboration before it can sustain an addition.

Electronic records relied upon for tax additions cannot, by themselves, justify an addition unless they are supported by the Section 65B(4) certificate or independent corroborative evidence. Here, the Revenue's electronic material lacked the required certification, and the related sale deed did not establish on-money, cash payment, or interest receipt attributable to the assessee. In the absence of corroboration, the electronic data was insufficient to sustain the addition, and the assessed amount was deleted in favour of the assessee.

---

---

Issues: Whether an addition under the Income-tax Act, 1961 could be sustained solely on the basis of electronic data without a certificate under Section 65B(4) of the Indian Evidence Act and without corroborative material.

Analysis: The electronic material relied upon by the Revenue was not supported by the certificate contemplated under Section 65B(4). The decision also applied the principle that, where the prescribed procedure for reliance on electronic records is not followed, such material can be acted upon only if it is supported by corroborative evidence. The relied-upon sale deed did not show that any interest was payable or paid to the assessee, and did not establish on-money, cash payment, or interest receipt. In the absence of corroboration, the electronic data could not by itself justify the addition.

Conclusion: The addition based on the electronic data was not sustainable and was deleted in favour of the assessee.

Final Conclusion: The appeal succeeded and the assessed addition was set aside because the Revenue failed to support the electronic material with the required certificate or corroborative evidence.

Ratio Decidendi: Electronic records relied upon for taxation cannot sustain an addition by themselves unless they are supported by the prescribed certification or by independent corroborative evidence.

---