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2018 (10) TMI 869 - HC - Income TaxAddition u/s 40A - cash payment exceeding permissible limit - Held that:- The Rule relevant at the time, namely Rule 6 (DD) of the Income Tax Rules, 1962 would enable the Assessee to urge that the exceptional or unavoidable circumstances led to payment made in cash. However, the reliance was placed on the District Supply Officer's order and which does not mandate any mode of payment either in cash or by cheque. It only says that the essential commodity should reach ration shop holders on making payment and within three days thereof. Beyond that, it can never override the stipulation in the I. T. Act. Such is the understanding of both the First Appellate Authority as also the Tribunal. In fact, the First Appellate Authority has rendered a detailed finding of fact as to how the huge cash payment has been made by the Assessee who claims to be an Agriculturalist and his whole agricultural income is exempted from I. T. Act. Additionally, he is a dealer but at or near Solapur this Assessee's ration shop was located. There were banking channels available even when supplies have been effected from the remote corner of Maharashtra. It is in these circumstances that there is no justification to invoke the proviso are the concurrent findings of fact. These findings of fact are based on the material produced on record. They cannot be said to be vitiated by perversity or error of law apparent on the face of the record - Decided against assessee.
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