Maldunge Retreat & Farming Private Limited vs. DCIT, Central Circle 8(1)

Parties Involved

Facts Summary

The assessee filed a return of income declaring a loss. A search and seizure action was conducted on DB Realty Group, Dynamix Group, and other related entities. Digital material, including WhatsApp communications, were seized during the search. The Assessing Officer recorded a satisfaction note and reopened the assessment under section 147. The assessee filed a return of income in response, and the Assessing Officer issued notices under sections 143(2) and 142(1). During reassessment, the Assessing Officer brought to the notice of the assessee certain digital material found during the search, which comprised WhatsApp communications between Shri Jayvardhan Goenka and Shri Jitendra Rathi. The Assessing Officer made an addition of Rs. 5 lakh under section 69A of the Income Tax Act, 1961, treating it as unexplained money. The assessee appealed against this addition.…

Legal Issues

• 1. Whether the addition of Rs. 5 lakh under section 69A of the Income Tax Act, 1961, can be sustained.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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