Order 1

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: CS DJ 379/26
BHAGWAN PRASAD Vs. RAJESH YADAV
25.04.2026
Present: Ms. Divya Anand, Ld. Counsel for the plaintiff.
(appearing through VC)
Heard on consideration.
The present suit has been instituted for the recovery of
Rs.10,51,161/- alongwith interest @ 18% p.a.
It is the specific case of the plaintiff that an amount of Rs.
8,00,000/- was advanced to the defendants in cash on 15.03.2016.
This Court finds that as a part payment of Rs.8,00,000/- is
averred to have been made in cash, the same being above the statutory
threshold, as allowed by Income Tax Act, prima facie attracts the bar
contained under the Income Tax Act, which prohibits cash
transactions exceeding Rs. 2,00,000/- in cash.
In this context, this Court is also guided by the
authoritative pronouncement of the Hon’ble Supreme Court in
Correspondence, RBANMS Educational Institution v. B. Gunashekar
& Anr., AIR 2025 SC 2065, decided on 16.04.2025, wherein the
Hon’ble Supreme Court has categorically directed that whenever
courts come across claims involving cash transactions of Rs.
2,00,000/- or more, the same shall be reported to the appropriate
Income Tax authorities for necessary action.
Further, in compliance with the said directions of the
Hon’ble Supreme Court, the Office of the Principal Commissioner of
Income Tax (Judicial), Delhi, has issued Circular No.
PCIT(J)/Pros./Ved Pal/2025-26/418 dated 29.05.2025, which has been
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duly circulated to all courts vide Order No.
44925-45050/Genl.(C)/HCS/THC/2025 dated 05.07.2025 issued by
the Office of the Principal District & Sessions Judge (HQs), Delhi.
The said circular mandates that such matters be formally reported to
the Director General of Income Tax (Investigation).
In view of the above legal position, this Court is satisfied
that the present case squarely falls within the category of matters
which are required to be reported to the concerned Income Tax
Department, namely, the Office of the Director General of Income
Tax (Investigation), Delhi, C-Block, 3rd Floor, Civic Centre, Minto
Road, New Delhi-110002.
At this stage, learned counsel for the plaintiff seeks time to
place on record the PAN details of the plaintiff, which are necessary
for forwarding the information to the concerned authority.
Considering the request and in compliance with the aforesaid circular,
the plaintiff is directed to file the PAN Card and Aadhaar Card on the
next date of hearing, so that the matter may be duly reported to the
nodal agency in terms of the directions of the Hon’ble Supreme
Court.
Now to come up for further proceedings on 28.05.2026.
(NEERAJ SHARMA)
District Judge-04(Central)
Tis Hazari Courts Delhi
25.04.2026
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