Income tax notice case
A person from Delhi was surprised when he received a notice from the Income Tax Department regarding undeclared investment of Rs 22 crore. This case was not ordinary, its basis was a WhatsApp chat. The Income Tax Department had raided a real estate company, in which some WhatsApp messages and photographs of envelopes were found from the mobile phone of another person. On the basis of these pictures and chats, the department claimed that the person from Delhi had invested huge cash in a private company.
Income Tax Department’s claim
According to an ET report, the Income Tax Department said that some envelopes were visible in these WhatsApp chats, in which the investment amount and interest were allegedly accounted for. That person’s name was also said to be written on an envelope. On this basis, the officials believed that this person was involved in a guaranteed return scheme from a private company and he had invested Rs 22 crore. After this, action was initiated under Section 153C and 69 of the Income Tax Act and a notice of heavy tax and interest was sent to the person.
taxpayer’s side
The ET report further stated that the person who received the notice categorically denied all the allegations. He said that neither he made any investment nor received any interest. He also said that his name was wrongly added to the envelopes or chats. He argued that the WhatsApp messages could not be considered evidence without any concrete evidence, as it was data of any third person, which was not recovered from his phone.
ITAT Delhi hearing
Income Tax Appellate Tribunal (ITAT) Delhi investigated the entire matter in depth. The investigation found that the digital data and chats shown by the tax department did not contain any concrete evidence or signatures. The envelopes in question clearly did not have the person’s name on them and there was no evidence on the interest calculation sheet either. Furthermore, no document or agreement proved that any transaction had actually taken place.
ITAT decision
ITAT said that electronic data like WhatsApp chats can be considered evidence only if it is independently corroborated or supported by other documents. No one can be accused of tax evasion merely on the basis of messages in the phone of a third person. Ultimately, on October 15, 2025, ITAT Delhi dismissed the entire case saying that the tax department had no ‘credible or verifiable evidence’ against the individual.