When Rakesh Sharma, a Delhi‑based pharmaceutical retailer, dumped Rs 2.47 crore in cash into three savings accounts on May 12 2026, the Income Tax Department fired a notice.
He claimed the money came straight from sales, backed by audited books, VAT returns and sample invoices, yet the Assessing Officer flagged missing debit entries and irregular bonus payouts.
Sharma appealed to ITAT Delhi; the tribunal, after reviewing his financial statements, bank records, and family savings documents, found no infirmity and linked the deposits to legitimate sales during the demonetisation period.
Chartered accountant Ashish Niraj praised the judgment, noting it confirms that meticulous record‑keeping can defeat negative assessments. Sharma can now keep the money, and the ruling may influence future cash‑transaction disputes.