Pen Drive cannot be Incriminating Material: Delhi HC sets aside Notice issued u/s 153C of Income Tax Act

Delhi HC quashes income tax notice under Section 153C, holding that a pen drive cannot be incriminating material without corroborative evidence. The High Court emphasized that the mere presence of data on a digital storage device, without additional supporting evidence linking it to undisclosed income or unlawful transactions, is insufficient grounds for issuing an income tax notice under this section. This order reinforces crucial evidentiary standards in tax investigations, ensuring that tax authorities must present substantial and verifiable proof before initiating proceedings that can have significant implications for taxpayers.