ITAT Delhi (2026)
CORE ISSUE
Whether cash deposited during demonetization can be treated as unexplained money under Section 69A when the Assessing Officer relies on publicly available Google data and market information.
FACTS IN BRIEF
The assessee claimed that cash deposited during demonetization represented normal business receipts.
The Assessing Officer:
- Examined business trends.
- Compared industry patterns.
- Used publicly available Google-based information and market data.
- Found inconsistencies between the assessee’s explanation and prevailing business realities.
TRIBUNAL’S FINDINGS
The ITAT reportedly upheld the addition under Section 69A on the ground that:
- Google data was not selectively chosen against the assessee.
- The information was publicly available and neutral.
- The Assessing Officer used the material as corroborative evidence rather than as the sole basis of addition.
- The assessee failed to produce convincing evidence linking the cash deposits with genuine business transactions.
IMPORTANCE OF THE DECISION
This ruling is significant because it recognizes that:
- Assessing Officers may use publicly available digital information.
- Open-source data can be considered during assessment.
- Technology-driven investigation methods are gaining judicial acceptance.
- The burden remains on the assessee to substantiate the source of cash deposits.
For demonetization-related cases, merely producing cash books may no longer be sufficient. Authorities are increasingly correlating:
- Historical turnover
- Industry trends
- Digital footprints
- GST records
- Banking patterns
- Market data
This decision reflects the evolving landscape of tax assessments in the digital age, where transparency, data analytics, and corroborative evidence play a decisive role.
CA. Amresh Vashisht
