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$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 165/2023 & CM Nos.13407-08/2023
AMAR NATH HARBANS LAL
..... Appellant Through: Mr Kapil Sharma and Mr Sushil Gaba, Advs.
versus
INCOME TAX OFFICER, WARD 47(5) NEW DELHI... Respondent Through: Mr Shailendera Singh, Sr Standing Counsel with Mr Viplav Acharya and Ms Dacchita Shahi, Jr Standing Counsels along with Mr Akash Saxena, Adv.
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MS. JUSTICE TARA VITASTA GANJU
O R D E R %
20.03.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM No.13407/2023 1. Allowed, subject to just exceptions. ITA 165/2023 & CM No.13408/2023 [Application filed on behalf of the appellant seeking interim relief] 2. This appeal concerns Assessment Year (AY) 2017-18. 3. There are concurrent findings of fact qua the appellant/assessee, to the effect that he has not been able to explain cash deposits made in his account post the demonetization period. 4. Mr Kapil Sharma, who appears on behalf of the appellant/assessee, however, says that information, inter alia, in the form of cash book and cash vouchers, was placed before the Assessing Officer (AO). 5. Inter alia, in support of his plea, Mr Sharma has drawn our attention ITA 165/2023
page 1 of 3 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:31:15
to a communication dated 06.12.2019. This communication is essentially the reply to the show cause notice dated 03.12.2019 issued by the AO. 6. Mr Sharma, in particular, makes a reference to paragraphs 4 to 6 of the said communication. For the sake of convenience, the said paragraphs are extracted hereafter: “4. This is for your kind information that assessee is an honest tax payer and was not having any unaccounted cash and not made any bogus cash sales. This is evident from the fact that the assessee had declared higher sales as mentioned under point No.2 above U/s 44 AD of the Income Tax Act 1961. This is a well established fact that there was spike in the sales in the month of November before demonetization and the assesse had fully declared the same in the ITR for the concerned AY i.e. 2017-18.
The sales have been fully declared in the VAT Return also and same is being reconciled truly. You will appreciate the fact the assesse had filed the VAT return and didn't make any changes in the VAT return later on. This shows that the data and intent of the assesse was so accurate that no changes were required later on in the VAT return. I would like to mention here, had it been bogus sales there should be some changes in the VAT return later on as no adjustment is so perfect that it doesn't require any adjustment later on.
Cash book had been submitted online vide submission Dated 20-11- 2019. Bills for the period November 2016 had been provided online vide submission Dated 08-11-2019. Reasons for huge deposit made in November and December are elaborated above. If anything else is required to complete the proceedings kindly let us know.”
Unfortunately, the entire record which was placed before the statutory authorities has not been filed in this court. 8. Mr Sharma is directed to file the entire record, albeit, in electronic form, with the Registry of this court. A copy of the same will be furnished to Mr Shailendera Singh, who appears on behalf of the respondent/revenue, via e-mail. 9. We may note that AO has added 30% of the purported unexplained ITA 165/2023
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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:31:15
cash deposits, i.e., Rs.10,20,000/-, to the appellant/assessee’s income. 10. List the matter on 28.07.2023.
RAJIV SHAKDHER, J
TARA VITASTA GANJU, J
MARCH 20, 2023/aj
Click here to check corrigendum, if any
ITA 165/2023
page 3 of 3
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:31:15