Section 28 BSA 2023: Entries in Books of Account When Relevant

Section 28 of the Bharatiya Sakshya Adhiniyam, 2023 deals with the evidentiary value of entries in books of account. It expressly covers books maintained in electronic form and applies where the entries are regularly kept in the course of business and relate to a matter that the Court has to inquire into.

Current law: The Bharatiya Sakshya Adhiniyam, 2023 (Act No. 47 of 2023) came into force on 1 July 2024. Section 28 is part of the law of evidence, not the Bharatiya Nagarik Suraksha Sanhita, 2023.

Text of Section 28 - Entries in books of account when relevant

28. Entries in books of account when relevant. Entries in the books of account, including those maintained in an electronic form, regularly kept in the course of business are relevant whenever they refer to a matter into which the Court has to inquire, but such statements shall not alone be sufficient evidence to charge any person with liability.

Meaning and legal effect of Section 28

Section 28 makes business account entries relevant evidence when three basic conditions are satisfied: the entries form part of books of account, the books are regularly kept in the course of business, and the entries concern a matter that is in issue or otherwise requires inquiry by the Court.

Books of account The provision applies to accounting records used in the ordinary course of business, including records kept electronically.

Regular course of business The account books should be maintained regularly as part of normal business activity, rather than created only for the dispute.

Relevant, not conclusive A qualifying entry can be considered by the Court, but relevance does not by itself establish liability.

Corroboration required The section expressly states that account-book entries alone are not sufficient to charge a person with liability.

Why account-book entries alone are not enough

The final part of Section 28 is important. Even when an account entry is admissible as relevant evidence, the Court should not impose liability solely on that entry. There must be other evidence supporting the transaction, debt, payment, supply, or other fact recorded in the accounts.

Depending on the dispute, corroboration may include invoices, receipts, contracts, purchase orders, delivery records, bank entries, correspondence, admissions, testimony, or other legally admissible evidence.

Electronic books of account

The BSA expressly includes books of account maintained in electronic form. Accordingly, accounting data maintained through computers, accounting software, enterprise systems, or other electronic systems can fall within Section 28 when the statutory conditions are met.

Where an electronic record is relied upon, the party must also comply with other applicable provisions of the Bharatiya Sakshya Adhiniyam governing proof and admissibility of electronic or digital records.

Illustration under Section 28

A sues B for one thousand rupees and relies on entries in A's account books showing that B owes that amount. The account entries are relevant, but without other supporting evidence they are not sufficient to prove the debt.

Practical application

Section 28 may arise in civil recovery proceedings, commercial disputes, partnership or business-account disputes, tax-related litigation, and other proceedings where regularly maintained accounts are relied upon to prove a financial transaction or liability.

The Court may consider the manner in which the books were maintained, their regularity, the connection between the entry and the transaction in dispute, and whether independent evidence supports the entry.

Related BSA provisions

Key takeaway

Section 28 permits regularly maintained business accounts, including electronic account books, to be used as relevant evidence. However, an entry in those books cannot by itself fasten liability on another person. Independent supporting evidence remains necessary.