TaxTMI 
TaxTMI 
2026 (4) TMI 43
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....'). Further details of the orders of the lower authorities are as under:- ITA No. & Assessment Year Appeal No. & Date of order of the CIT(A) ITA No.3094/Del/2023, AY: 2012-13(R) 10128/2011-12, dated 11.08.2023 ITA No.3413/Del/2023, AY: 2016-17(A) 11116/2015-16, dated 06.09.2023 ITA No.3144/Del/2023, AY : 2017-18(A) 10764/2016-17, dated 20.09.2023 ITA No.3422/Del/2023,AY : 2017-18(R) -do- ITA No.3145/Del/2023, AY : 2018-19(A) 10558/2017-18, dated 25.09.2023 ITA No.3423/Del/2023, AY : 2018-19(R) -do- ITA No.3146/Del/2023, AY, 2019-2020 10612/2018-19, dated 20.09.2023 ITA No.3424/Del/2023, AY : 2019-20(R) -do - ITA No.3147/Del/2023, AY : 2020-21(A) 10570/2019-20, dated 15.09.2023 ITA No.3425/Del/2023, AY : 2020-21(R) -Do- ITA No.3148/Del/2023, AY : 2021-22(A) 10021/2020-21, dated 20.09.2023 ITA No.3426/Del/2023, AY: 2021-22(R) -Do- 2. Heard and perused the records. The brief background of impugned assessment are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 was conducted on 23.03.2021 and on subsequent dates in the case of Balar Marketing Pvt Ltd, Sh. Parasmal Jain. The group was....
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....ring the course of search proceedings and post search proceedings, it was also allegedly gathered that the assessee company is maintaining its parallel books of account in software namely 'Sambhav softaware', which contains the images of cash transaction undertaken by the assessee company. Further, during the post search proceedings Sh. Vimal Jain in his statement u/s 131(1A) of the IT Act, 1961, in response to Q10 clarified that year mentioned in the Sambhav software images are moved to 10 years back and amounts moved 2 digits back. Further cash transaction which are out of books is recorded in Sambhav Software by the name of "Bhaga". Further out of books cash sales images which have been extracted from Sambhav software found from the mobile of Sh. Vimal Jain. Sample images are made part of assessment order and are attached as Annexure C. During the course of Post Search Proceedings, Statement of Shri Paras Mal Jain was recorded on oath under section 131(1A) of the Income Tax Act.( Copy of the above stated statements have been made part of assessment order and are attached as Annexure D) Shri Paras Mal Jain has allegedly admitted unaccounted cash transactions of Shri Vimal Jain wi....
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....f the Act by the Addl. CIT, Central Range-4, New Delhi, is not in accordance with the law. The ld. AR has relied various judicial decisions of the Hon'ble jurisdictional Delhi High Court in the case of PCIT vs. Shiv Kumar Nayyar, 467 ITR 186; PCIT vs. Anuj Bansal, 466 ITR 254, and the decision of the Hon'ble Supreme Court in the case of ACIT vs. Serajuddin & Co. (2023) 150 taxmann.com 146, wherein the decision of the Hon'ble Orissa High Court quashing the assessment on the basis of mechanical approval has been sustained by the Hon'ble Supreme Court. 5. Ld. DR has defended these issues with contention that firstly provision of Evidence Act are not applicable in tax assessment proceedings. It was submitted that even otherwise necessary compliances were made by getting E-Certificate and maintaining records of seizure of electronic evidences. As with regard to questioning approval granted u/s 153D of the Act, ld. DR has primarily asserted that its only administrative function and other wise the competent authority is always aware of all the issues involved and questionnaire raised and findings of AO, so competent authority had sufficient time to grant approval. The contentions shall....
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....s issue in all the AY Issue no. 7 Addition u/s 40A(3) of the Act on account of cash purchase. Issue is common AY 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22. Revenue is in appeal on this issue. Issue no. 8 Addition on account of alleged bogus purchase from Copoor Industries Pvt. Ltd. The issue is common to AY 2012-13. Assessee and revenue both are in appeal. Issue no. 9 Addition on account of alleged bogus purchases from Brilliant Metals Pvt. Ltd. and Manoj Garg. The issue is common to AY 2019-20, 2020-21 and 2021-22. Assessee and revenue are in appeal in AY 2019-20 while revenue is in appeal in all these years. Issue no. 10 Addition on account of salary paid to Vineet Baidrs. 75,000/- and to Vimal Jain of Rs. 14,40,000/- The issue pertains to AY 2020-21. The assessee is in appeal. Issue no. 11 Addition made on account of sale of LED. The assessee is in appeal. Issue no. 12 Addition on account of unexplained investment in stock. Issue pertains to AY 2021-22. The assessee is in appeal. Issue no. 13 Addition on account of difference in rate of copper and DM....
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....unt duly maintained. 7.4 Thus the only evidence is images of 'Sambhav software', which is definitely a secondary piece of electronic evidence as the original software was not found in search and it seems AO had also not tried to get this software from Mr. Vimal Jain or the assessee by way of any notices. Then the other evidences are whatsapp chats of Mr. Vimal Kumar with some persons with he was exchanging 'tokens', which allegedly formed modus of payments of out of book purchases and sales. This too is electronic evidences. Thus we have to examine if these two electronic evidences were legally relevant, admissible and independently of any corroboration could have been basis of drawing conclusions and complete the assessment. 8. Now, as with regard to the issue of admissibility of electronic evidences, the ld. AR has heavily relied upon the Digital Evidence Investigation Manual, 2014 (hereinafter called 'the Manual') of the Central Board of Direct Taxes to submit that a detailed procedure has been provided by the Board with regard to collection of digital evidences and the manner in which the same has to be relied during the assessment proceedings. 9. Here, at outset, we f....
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....sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorised officer the necessary facility to inspect such books of account or other documents; and by Finance Act, 2009, clause (c) was inserted in sub-section (1) of Section 282 providing that service of notice in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000) will constitute valid service." 11. In this context, it can be further observed that in para 1.5 the objectives of the Manual are mentioned which states that the aim of this Manual is to apprise the user of "basic legal provisions relating to digital evidence in Income-tax Act and other laws including Information Technology Act and Indian Evidence Act." 12. Then, to counter the assertion of ld. CIT(A) and ld. DR too, that provisions of Section 65B of Indian Evidence Act are not applicable to income tax assessment proceedings, we would like to reproduce from this Manual as to how the Board perceived the relevance of various provisions of the different statutes and how specifically referred to the provisions of section 65A and 65B of the Indian Evidence Act, 18....
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....ub-section (1) of Section 282 providing that service of notice in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000) will constitute valid service. 2.7.3 Under Indian Evidence Act there are several references to documents and records and entries in books of account and their recognition as evidence. By way of the THE SECOND SCHEDULE to the Information Technology Act Amendments to the Indian Evidence Act have been brought in so as to, incorporate reference to Electronic Records along with the document giving recognition to the electronic records as evidence. Further, special provisions as to evidence relating to electronic record have been inserted in the Indian Evidence Act, 1872 in the form of section 65A & 65B, after section 65. These provisions are very important. They govern the integrity of the electronic record as evidence, as well as, the process for creating electronic record. Importantly, they impart faithful output of computer the same evidentiary value as original without further proof or production of original. Accordingly, while handling any digital evidence, the procedure has to be in cons....
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....to act upon the supposition that it exists. This definition of 'proved' uses the words, 'after considering the matters before it' and does not refer to merely evidences. Thus, it is not only the evidences, but, matter as a whole on record gives the court opportunity to draw an inference about the existence or non- existence of fact. 13.4 The ld. tax authorities like any other quasi judicial authorities when entering into any inquiry to reach a conclusion on the basis of evidences, also rely the statements in the form of oral evidences or documents including electronic records called documentary evidences which form substantive material for believing a fact to exist or otherwise existing either by way of a conclusive opinion on the basis of a prudent man approach. 13.5 In this context, the provisions in section 143(2) and 143(3) of the Income Tax Act 1961 become relevant and which are reproduced below:- "143(2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the as....
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....ot applicable. As for instance a Will, as per section 68 of the Evidence Act being a document required to be attested can be used in evidence only when one of the attesting witnesses at least has been examined for the purpose of proving its execution. However, in quasi judicial proceedings, like assessment, such strict mode of proof of Will is not necessary. That does not dispense with applicability of rules of fairness, prudence and natural justice which are foundation of evidence law. 13.9 As for our discussion with regard to this aspect we may mention here that under the Assessment proceedings the admission may be in the form of statements recorded at time of search and seizure under Section 132(4) of the Act and the statement have evidentiary value and can be used as evidence in any proceeding under the Act. Statement recorded during survey under Section 133A(3)(iii) unlike a statement under Section 132(4) of the Act, is not on oath and therefore has no evidentiary value, though it can still be used in proceedings being. Then during assessment proceedings u/s Section 131 of the Act, statement on oath are recorded by AO. However, statements recorded even on oath though binds ....
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....87 ITR 349 (SC) the Hon'ble Supreme Court held that the onus to prove that the apparent is not real is on the party who claims it to be so. 15.1 We also find that as enshrined under Evidence Act, secondary evidences, like photocopies of a documents, are also not held be reliable for completing assessment. Reliance can be placed on decision of Hon'ble Delhi High Court in Principal Commissioner Of Income Tax, vs Smt. Rashmi Rajiv Mehtadecidedon 4 March, 2024 vide ITA 984/2019(2024) 299 Taxman 82 (Delhi)(HC), wherein Hon'ble High Court has consider photo copy of an agreement of sale and held as follows; "No doubt the income tax proceedings are not bound by the technical rule of evidence, but where the addition is solely based on a photocopy of alleged document and the authenticity of such photocopy which is being made basis for making addition is being challenged by the assessee, then ostensibly onus will shift upon the Revenue to first establish the authenticity of such photocopy, thereafter, the onus may shift to the assessee to establish what is stated is correct. Here is the case where Revenue has failed to establish the authenticity of the photocopy of the alleged....
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....ded in the definition of 'evidence' in section 3 of the Evidence Act however, the same are frequently called for and relied in the assessment proceedings. 17. Thus we are of considered view that certain Rules of natural justice, prudence and common sense as enshrined in the Evidence Act certainly become applicable in all quasi judicial proceedings also even if there is no strict application of Evidence Act. Based on aforesaid discussion we can certainly hold that the strict principles and Rules of 'mode of proof' under the Evidence Act may not be applicable to assessment proceedings but the aforesaid discussion leaves us to a conclusion that even if the Evidence Act is not made strictly applicable to the tax proceedings by the Income Tax Act 1961, the fundamental principles of law of evidence defining what constitutes evidence, the relevancy of evidence for the issues under consideration, the principles of their admissibility in terms of valid mode of proof and probative value of the evidences, cannot be ignored even by quasi judicial authorities. Thus where the initial burden of proof is on the Revenue authorities to show that the receipts constitutes income, and only real inco....
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....ct of 1962. The Hon'ble Supreme Court observed that section 65B(4) of Indian Evidence Act is parimateria to section 138C(4) of the Act of 1962 and, further relied the decision of the Hon'ble Supreme Court in ArjunPanditraoKhotkar v. KailashKushanraoGorantyal and Others (2020) 7 SSC 1,and observed that in the said decision the Hon'ble Supreme Court, while explaining the mandatory nature of section 65B(4) of the Indian Evidence Act applied following two Latin maxims :-(i) impotentiaexcusatlegem; (ii) lex non cogitadimpossibilia, and thereafter held that these two maxims are the foundation with regard to admissibility of electronic evidences and though section 65B(4) of the Evidence Act is mandatory, yet, it would all depend on the facts of each case, how the same could be said to have been duly complied with. 20. Accordingly, in the said case of Suresh Kumar (supra), the Hon'ble Supreme Court considered the 'substantial compliance' of section 138C(4) to be sufficient and, therefore, we can firmly conclude that if, in the case of the Income- tax Act, 1961, there are no specific provisions with regard to admissibility of electronic evidences, then, the Manual issued by the Board wou....
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....ed devices to the investigation wing at the time of search and seizure. However, the link evidences showing connectivity of a chain of custody to reach the Assessing officer are not there in the documents provided by the department. Ld. DR who is present virtually, has requested that the current incumbent DR of this Bench 'A' be directed to procure the relevant documents/ information. Accordingly, it is directed that department will ensure filing all the material establishing admissibility of the electronic evidences, specially the chain of custody document from the stage of handing over of the electronic devices to the Investigation Wing reaching the hands of the Assessing Officer. Ld. DR is requested to forward a copy of this order for information to the present incumbent DR of 'A' Bench and also to the concerned Assessing Officer. As, this Bench has considerably heard the matter at length, it is kept for further clarification on this aspect only for 14.08.2025. No further opportunity shall be granted to the department, and it will be presumed that there is no other piece of information/document available with the Assessing Officer than ....
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.... a fixed-length string of characters, known as the digest. This digest is non-reversible-meaning it cannot be decrypted or traced back to the original content-and is therefore used as a digital fingerprint for the data. Even a minor change in the original dataset would result in a completely different hash value, which makes it an effective mechanism for data integrity verification. Hash value can be generated of any data set and it's a data unique value. Which mean, if two data sets having exactly the same data will be having the same Hash value. This function of hashing is used for ta integrity check in case of tampering of data after a hash value is produced. Majorly two types of hashing algorithm are used i.e., MD5 and SHAI. MD5 (Message Digest Algorithm 5): Produces a 128-bit hash value. It is efficient and widely supported across forensic platforms, and primarily used as a checksum to detect unintentional data corruption. SHA-1 (Secure Hash Algorithm 1): Produces a 160-bit hash value, typically rendered as a 40-character hexadecimal string. It provides a higher level of uniqueness and is often used for evidence validation in legal settings. ....
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.... Digital Evidence Investigation Manual 2014 defines 'Chain of Custody' as - "Chain of custody" is the roadmap that shows how evidence was collected, analyzed and preserved in order to be presented as evidence. Establishing a clear chain of custody is critical because electronic evidence can be easily altered. A clear chain of custody would demonstrate that electronic evidence is trustworthy. Preserving a chain of custody for electronic evidence, at a minimum, requires that- i. No data has been added, changed, deleted from the seized information evidence ii. The seized/information evidence was duplicated exactly and completely. iii. A reliable and validated duplication process was used. iv. All media were secure and safe. Based on above, the chain of custody of the seized electronic evidence was never compromised in the process described above and followed in the case of the assessee. The cloned data is stored in 2 devices, 'a Working Copy' and 'a Master copy'. And the master copy is sealed permanently and is never desealed. The hash value (i.e.-a unique digital fingerprint representing all the information stored on the original ....
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....peat of serial no 2 12-13 Not relevant 7 Repeat of serial no 4 14 Not relevant 8 Hash details of iPhone XS Max 15 Not relevant 9 Extraction report of Apple iPhone XS Max 16-17 Not relevant 10 Extraction report of Apple iPhone - Ms. Pooja Jain 18-19 Not relevant 11 Extraction report of Apple iPhone 11 - Bilesh 20 Not relevant 12 Verification report (Txt file) of Ms. Pooja Jain Laptop 21-23 Not relevant 13 Hash details of iPhone backup 24 Not relevant 14 Extraction report of Apple iPad 25 Not relevant 15 65B Certificate of Mr Parasmal Jain 26-27 Not relevant 16 65B Certificate of Mr Vimal Jain 28-32 Relevant 17 Repeat of serial no 16 33-37 Not relevant 18 Repeat of serial no 16 38-42 Not relevant 19 Chain of Custody - NAAY1V6X - Mr Vimal Jain 43 Relevant 20 Chain of Custody - NAC2BF61 - Mr Vimal Jain 44 Relevant 21 Digital evidence collection form -SanDisk pen drive 45-46 Not relevant 22 Repeat of serial no 21 47-48 Not relevant 23 Repeat of serial no 21 49-50 Not relevant 2....
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....ue and SHA1 hash value of the two devices, which were impounded at the time of seizure of these devices and hash value of one external drive used to copy the content of all the digital devices seized. 28. Further, as we examine the copy of so called 65B certificate said to given by Mr. Vimal Jain, the same is shown to be dated 24.03.2021. This certificate at one end merely mentions an undertaking that Mr. Vimal Jain was the owner and user of these device. At the other end, this certificate given u/s 65B of the Evidence Act is shown to be given by Mr. Ashwin Vijayan, Digital forensic examiner who merely certifies that the data is backed up from the seized phones and stored in the target device with relevant details of phone and target device mentioned in the certificate. This certificate is therefore just about process of collection of digital evidences and cloning being followed at time of search. It nowhere mentions of extraction of data which was used later for appraisal report or in assessment. There is no mention in these certificates not there are other certificate to show as to when and how the working copy was examined at time of preparation of appraisal report or assessm....
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.... the initial state of the Digital Evidence. * Digital Forensic Report (Given by Forensic Examiner) containing details of hash value and the details of all mahazar drawn to open the digital evidence at various times to gather further evidences should be included as an annexure to the assessment order. If the chain of custody form is present, the same can be annexed to the assessment order. This will establish the integrity of the data before any court of law. * The Key digital evidences retrieved if deleted along with the description of the same, in case of business application software, a note on how the business application software is and the technical details of all critical components. * Whether these digital evidences have been confronted to the assessee under any section of the law? The relevant portions of the statement under various sections of Income Tax Act should be included in the order. * Circumstantial evidences and other key physical evidences seized/impounded should be linked to the digital evidence. Usually the physical evidences like loose papers, sheets gives details of one particular transaction, while the .digital evidences m....
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....o be dated 24.03.2021. The so-called certificate u/s 65B are also dated 24.03.2021. In continuity to the above, as the Panchnama document are examined they are shown to be witnessed on 25.03.2021. 33. At the same time, the statement of Shri Vimal Kumar Jain was recorded u/s 132(4) of the Act and the same is shown to be recorded on 23.03.2021 at 4 PM during the search. This statement is shown to be recorded by Shri Keshaw Kishore Anand. The statement shows that after putting 14 questions on 23.03.2021 at 8.30 PM, recording of statement was closed. This statement shows that Mr. Vimal Kumar Jain was not confronted with any of the digital devices seized or any evidence extracted at time of search. It can be observed that thereafter on 24.03.2021 the statement was continued further starting at 4.30 PM and was recorded by Shri Keshaw Kishore Anand. Therein the digital devices iPhone and Panasonic were confronted and he admitted about their ownership. It can be seen that certain questions were also put up about the whatsapp messages extracted running from pages 1 to 77 in the form of print outs and SMS messages running from page 1 to 165. As observed above the so-called certificate u/s....
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....f the appraisal report. 37, Then report which assessing officer has filed and we have reproduced in para 18.1 above admits that the procedure of seizure of electronic devices as well as imaging and cloning of digital devices is carried on in accordance with the Search and seizure manual (last updated in 2025) and Digital Evidence Investigation Manual 2014 and that chain of custody was not maintained subsequent to time of search. It is certainly thus not the case of department that assessing officer had any opportunity of examining the credibility of electronic evidences and then to record of same in the assessment order. Therefore, the chain of custody form as left incomplete demolishes the case of the Department that there is no reason to doubt the electronic evidences relied by the AO. 38 More importantly, as we examined the assessment order, we find that none of the directions of the Manual have been followed by the AO except for making the extracts of digital images of Sambhav Software or statements annexed to the assessment order. The aforesaid directions of Board in para 9.1 and 9.6 of the Manualhave been completely ignored by the AO. It appears that at time of initiati....
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....action report of these two mobiles or of working copies though of some other devices found in search are placed in material before us. Then the certificate u/s 65B should have shown that the output to be relied as an evidence was produced from the working copy and that the same was in lawful control of the person signing the certificate and certainly the chain of custody document would have established same. However, the chain of custody document filed is completely silent about the same. 40. Then it is also pertinent to mention that the incriminating evidences relied by the AO is not the primary evidence existing in the laptop or computer wherein the alleged Sambhav software was installed, but, are merely images of Sambhav software which allegedly Mr. Vimal Jain was sharing with counterparts for acknowledging the transactions. Similarly, on going through the Whatsapp chats as part of the annexure to the assessment order, the same do not contain any message which will narrate any transaction on its own, but, only mention some figures which are allegedly to be codes. When original Sambhav software could not be retrieved from any of the electronic devices the images in the phones ....
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....compliances with regard to their collection, analysis and admissibility as laid in the Manual prescribed by the Board have been made. 44. Then, on the same date, 30.03.2022, for assessment year 2011-12 to 2015-16 and AYs 2016-17 to 2021-22, by two separate letters approvals have been granted by the competent authority and for the sake of convenience the approvals so given are reproduced below:- 45. The ld. DR has relied the submission that during the assessment proceedings assessing officer from time to time discussed the issues with the senior authorities and, accordingly, the approval is sought. Relying on the judgement of the Hon'ble Supreme Court in Narayanappa vs. CIT, 63 ITR 219 (SC), it was submitted that such approval is only administrative, and is not a quasi judicial act. Reliance is also placed on the Hon'ble Karnataka High Court decision in the case Rishabhchand Bhansali vs. DCIT, 136 taxman 579 to submit that approval is merely an administrative act. Then, Mumbai Tribunal decision in the case of Usha Satish Salvi vs. ACIT, ITA Nos.4239, 4237 & 4238/Mum/2023, order dated 23.01.2025 has been relied to submit that there has to be presumption that approval has been g....
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....atutory principles for ensuring that at time later, in judicial scrutiny, the credibility of material, specially electronic evidences, relied by the assessing officer is sustained. 47. The approval u/s 153D of the Act is in itself dispensation of a quasi judicial function. It may be administrative in a way that at time of granting approval no notice of hearing is needed to be given to the assessee. But if it is merely an administrative function then in case of denial any authority senior to the approving authority can reverse the decision of approving authority, which is not the scheme of the Act. Approval here is an action of validating the quasi judicial act of assessment which should have been in accordance with the law. Every aspect of search assessment starting from sanction of search, conduct of search, credibility and worthiness of alleged incriminating material, following due process of law laid down in the Act or instructions, need to be examined at the end of approving authority and on the basis of some conscious decision taking the draft assessment order should be approved. If the AO has failed to follow the due process of law while admitting and relying the electroni....
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....he part of the Revenue to contend that the approval itself is not justifiable. Where the Court finds that the approval is granted mechanically, it would vitiate the assessment order itself. The Hon'ble High Court inter-alia observed that there is no even a token mention that draft order has been perused by the Ld. Addl. CIT. The approval letter simply grants approval. In other words, even the bare minimum requirement of approving authority having to indicate what thought process involved leading to the aforementioned approval has not been provided. As explained, the mere repeating of words of the Statue or mere rubber stamping of the communication seeking sanction by using similar words like 'approval' will not, by itself, meet the requirement of law. The Hon'ble Court made reference to manual issued by the CBDT in the context of erstwhile section 158BG of the Act and observed that such manual serves as a guideline to the AOs. Since it was issued by CBDT, the powers of issuing such guidelines can be traced to section 119 of the Act. The Hon'ble High Court also held that non-compliance of requirement of section 153D of the Act is not a mere procedural irregularit....
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....mandate of the enactment by the legislature will be defeated. For granting approval under Section 153D of the Act, the Approving Authority shall have to apply independent mind to the material on record for "each assessment year" in respect of "each assessee" separately. The words 'each assessment year' used in Section 153D and 153A have been considered to hold that effective and proper meaning has to be given so that underlying legislative intent as per scheme of assessment of Section 153A to 153D is fulfilled. It was held that the "approval" as contemplated under 153D of the Act, requires the approving authority, i.e. Joint Commissioner to verify the issues raised by the Assessing Officer in the draft assessment order and apply his mind to ascertain as to whether the required procedure has been followed by the Assessing Officer or not in framing the assessment. The approval, thus, cannot be a mere formality and, in any case, cannot be a mechanical exercise of power. *** 19. The careful and conjoint reading of Section 153A(1) and Section 153D leave no room for doubt that approval with respect to "each assessment year" is to be obtained by the Assessing Off....
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....he fact that approval has been obtained, should be mentioned in the body of the assessment order." [Emphasis supplied] 14. During the course of arguments, learned counsel for the assessee apprised this Court that the Special Leave Petition preferred by the Revenue against the decision in the case of Serajuddin (supra), came to be dismissed by the Supreme Court vide order dated 28.11.2023 in SLP (C) Diary no. 44989/2023. 15. A similar view was taken by this Court in the case of Anuj Bansal (supra), whereby, it was reiterated that the exercise of powers under Section 153D cannot be done mechanically. Thus, the salient aspect which emerges from the abovementioned decisions is that grant of approval under Section 153D of the Act cannot be merely a ritualistic formality or rubber stamping by the authority, rather it must reflect an appropriate application of mind." 51. Whatever possible contentions as available and raised by the Department have been taken note of and adjudicated very comprehensively by third member decision of a coordinate bench, and for completeness the relevant conclusion in the case of Shri Dheeraj Chaudhary ITA Nos. 6158 to 6160/De l/2018 and....
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....lity in treatment and thus prevents bias, prejudice and arbitrariness. It also prevents and avoids inconsistent and divergent views. The power of approval to the specified authority i.e., Superior authority has been envisaged with the objectives that no illegality or biasness, to either of the sides i.e., the assessee or the Revenue, remains." 52. Thus we are inclined to sustain challenge of assessment order on the basis that same are outcome of vitiated approval u/s 153D of the Act. Corresponding grounds thus deserve to be sustained. 53. Thus, the appeals of assessee succeed and corresponding appeals of revenue deserves to be dismissed. Accordingly ordered and the impugned assessments stand quashed. Order pronounced in the open court on 18.03.2026. ============= Document 1 CERTIFICATE UIS 650 OF THE INDIAN EVIDENCE ACT. 1872 1, Mr. Vimal Kumar Jain, stato the following that, I am residing at D-99, Block-D, Jhilmil Colony, Delhi I, Mr. Vimal Kumar Jain, state that by virtue of being the user/owner of these devices, I and colleagues are using the devices found on the D-99, Block-D, Jhilmil Colony, Dellil. Further, the devices used by us in this premise was functi....
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....evices: Kala KEZNAV KISHORE AND Assessed Signature: and 24/3/2021 24/3/21 Authorized Officer: Engineer/Examiner Signature: Sisila 24/03/21 Witness-1 Signature: Dfastrak 241.31 Witness-2 Signature: Document 4 Mobile Device Collection Form Hash Value report of Vimal Jain Panasonic ELUGA 17 16GB.ad1 Name of Authorized Officer: Mr.Keshav Kishor Anand, DDIT (inv.) Name of Assessee: Mr.Vimal Kumar Jain Date: 23/03/2021 Time: Premise Address: D-99, Block-D, Jhilmil Colony, Delhi Examiner's Name and Detalls: Mr. Aswin Vijayan Digital Forensic Evidence Examiner Case Information: The Search u/s 132 of the Income Tax Act, 1961, In the case of BALAR MARKETING PRIVATE LIMITED & PARAS MAL JAIN at D-99, Block-D, Jhilmil Colony, Delhi (Residence of Vimal Jain) Date of Search: 23-03-2021. Evidence Information If Switched On, what is visible on Screen? Lock Screen Mobile State Hibernation/Sleep Off On Make: Panasonic Mobile Type: Model: ELUGA 17 Mobile Info Others 3G 4G GSM CDMA 355885108971447, 355885108971446 ELI7EE32007001631 IMEI Number Mobile Serial Number(If any) Operating System(W....
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.... Mr. Vimal Kumar Jain, state the following that, I am residing at D-99, Block-D, Jhlimil Colony, Delhl. I, Mr. Vimal Kumar Jain, state that by virtue of being the user/owner of these devices, I and colleagues are using the devices found on the D-99, Block-D, Jhilmil Colony, Delhl. Further, the devices used by us in this premise was functioning normally all times and this Devices was used for meeting various business interest and my personal affairs. I, Mr. Vima! Kumar Jain, along with me and/or my colleagues are involved In entering data on these devices In the Premise. . Accordingly, I, Mr. Aswin Vijayan (Name of Digital Forensic Examiner) certify that the data is backed up from this Devices during the search proceedings u/s 132 of the income Tax Act, 1961 In the case of BALAR MARKETING PRIVATE LIMITED & PARAS MAL JAIN at D-98, Block-D, Jhilmil Colony, Delhi (Residence of Vima! Jain). during the course of search proceedings u/s 132 of the Income Tax Act, 1961 on (Date Of Search: 23-03-2021), is stored in the devices with the following detalls: Evidence Name Vimal Jain |Phone 7 128GB.ad1 MD5 hash value: b8668bae6be8bac510e22b8odf6a9df6 SHA1 hash value: 7499669b0b4....
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.... Examiner Signature: 55 Document 10 Evidence Name Vimal Jain SanDisk Cruzer Blade 8GB.E01 MD5 hash-value: 326bf09558c6756159ae1830eb11739e SHA1 hash value: a014d2f74b2348ca38a9970ebf7bba35a480f2b9 Software Used: Created By AccessData® FTK® Imager 4.5.0.3 Master Copy Details Working Copy Detalls Make: SEAGATE Model: Expansion Portable Make: SEAGATE Model: Expansion Portable Serial No: NAC2BF61 Serial No: NAAY1V6X I, Aswin Vijayan (Name of the Digital Forenalo Examiner) certify that above data backup is at true and Identical copy / reproductions of electronic records, which was regularly fed In these devices. Therefore, this certificate is sufficient compliance of Section 66B of the Indian Evidence Act, 1872. Signature of A880800; Name of Assesse: 201/3/21 Designation of Assesse: Admine Signature: 24(3R) Name: Aswin Vijayan Designation: Digital Evidence Examiner Document 11 The Indian Evidence Act, 1872 Section 65B. Admissibility of electronic records .- (1) Notwithstanding anything contained in this Act, any Information contained in an electronic record which printed on a paper, stored, recorded or copied in optical or....
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....m No.003,GF, C- Block, Civic Centre, J.L.Nehru Marg, New Delhi-110002 E-Mail: delhi.ddit.inv1.2/@incometax.gov.in F.No. ADIT (Inv.)/Unit.1/2)/Search/2020-21/ 17 2621- 22 Date: 25.11.2021 To. The Deputy Commissioner of Income Tax Central Circle-13, ARA Centre, E-2, Jhandewalan Extn., New Delhi - 110055 Sir, Subject: Transfer of seized material in the case of M/s Balar Marketing, (D.o.S : 23.03.2021) - reg. Please refer to the above mentioned subject. 2. In this regard, it is informed that the Appraisal Report in the case of M/s Balar Marketing group (Date of search: 23.03.2021) has been sent to your office vide this office letter No. F.No. ADIT (Inv.)/Unit-1(2)/Appraisal Report/2019-20/1025 dated 16.12.2019. 3. In this connection, seized/impounded documents/papers/materials relating to M/s Balar Marketing group are hereby transferred to your office i.c. Deputy Commissioner of Income Tax, Central Circle-13, Delhi as mentioned in Annexure-'A' (Seized materials in original & shadow copy of search/survey folder enclosed) for further necessary action in the matter. Assil, Commissioner of Inusing Tax Centra: Cuiche-13/Max Dein( Yours faithfully, 24/1/21 ....
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....T/CC-13/153D/2021-22/647 Dated: 30.03.2022 To The Addl. Commissioner of Income Tax Central Range-4, New Delhi Madam, Subject: Approval n/s 153D of the I.T. Act, 1961 for making assessment u/s 153A of the I.T. Act, 1961 in the case of Mis Balar Marketing Private Limited (PAN: AAACH036IN) in the case of Balar Marketing Private Limited and others Group - reg. Kindly refer to the above noted subject. 2. In this regard, it is submitted that the case details have been discussed from time and time along with the case records and your directions and instructions with respect to completion of the assessment proceedings have been duly followed. 3 Kindly find enclosed herewith the draft assessment orders in the above mentioned case for your kind consideration and pocossary administrative approval. The assessment year wise brief details of the case are as under :- S No 11 Section Returned Income (in Rs.) Assessed Income (in Rs.) - 2016-17 153A r.w.s 143(3) 36289100 37819100 2 2017-18 153A r.w.s 143(3) 105897670 175262760 1 2018-19 153A r.w.s 143(3) 116254660 471685928 2019-20 153A r.w.s 143(3) 92427350 510939748 2020-21 153A r.w.s. 143(3) 69784....
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....erewith. 4. Further, it is also directed that no order shall be passed without "DIN" in view of the CBDT's Circular No. 19/2019 dated 14.08.2019. Encl: As above (YAMINI) AddL Commissioner of Income Tax Central Range-4, New Delhi Dy No ..... Document 17 OFFICE OF THE ADDL. COMMISSIONER OF INCOME TAX. CENTRAL RANGE-4, NEW DELHI Room No. 249, 2" Floor, ARA Centre, E-2, Jhandewalan Extension, New Delhi - 110055 Phone No. 011-23593272: E-Mail I.D .: [email protected] F.Na. Addl. CIT/C.R-4/Approval 153D/2021-22/1706 Date: 31.03.2022 Deputy Commissioner of Income-tax, Central Circle - 13, New Delhi Sub: Approval u/s 153D of the I.T. Act, 1961 in the case of M/s Balar Marketing Private Limited (PAN: AAACB036IN) in the case of Balar Marketing Private Limited and others Group - reg. Please refer to your letter F.No. DCIT/CC-13/153D/2021-22/647 dated 30.03.2022 whereby you have submitted draft assessment orders, seeking approval u/s 153D of the I.T. Act. 1961 in the case of M/s Balar Marketing Private Limited (PAN: AAACB0361N) in the case of Balar Marketing Private Limited and others Group for the A. Ys. 2016-17 to 2020-21 u/s 153A r.w.s. 143(3....