The Income Tax Department sued a Delhi couple in March 2023, claiming they received an extra Rs 1.70 cr in cash when they sold a property for Rs 1.60 cr in 2019.
The case hinged on an Excel file titled “BOSS – DEC 18 onwards”, handwritten diary entries and WhatsApp chats that the department said recorded cash payments of Rs 50 lakh, Rs 20 lakh and Rs 15 lakh, adding up to the disputed amount.
ITAT Delhi, in a 2024 order, found that the chats merely referenced figures without clarifying their purpose and that the taxpayer had not been given a chance to cross‑examine the people quoted.
The tribunal dismissed the addition under Section 69A and ruled that the taxpayer was entitled to the full capital‑gain exemption on the Rs 1.60 cr sale value.
The couple, who used the proceeds to buy a new flat in Gurgaon, now faces no further tax liability on the Rs 1.70 cr they allegedly received.