TMI Blog2018 (10) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961. 5. The question proposed in this Appeal is, such invocation was improper given the facts and circumstances of the present case. The essential argument was that the circumstances in which this transaction was entered into and finalized ought to be taken into consideration. Section 40A was inserted with an aim and object. That was very specific and that is to discourage cash payment beyond certain limit. All transactions beyond specified monetary limit had to be by cheque or what is commonly understood as Demand Drafts / Pay Orders. That would ensure that the channel of payment is legal and fair. The proviso to the Section is permitting such payment by cash but on evidence and clear proof that, either it is because of extent of ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the ration card holder. The Assessee shop keeper therefore could not have devised anything contrary to Section 40A (3) of the I. T. Act and passed it of as an order of the Government. 9. The order of the District Supply Officer is conspicuous by its silence with regard to the mode of payment. It is only saying that the payment has to be made within a specified period. The District Supply Officer's order or for that matter of the State Government cannot be contrary to law much less I. T. Act. 10. Income tax discourages payment of money in cash and beyond a specified limit. That is to encourage cheque transactions and banking operations. It is in these circumstances that the Assessing Officer found that out of the total conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances 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. That this Court has admitted an Appeal and framed similar questions as substantial questions of law, is no justification for admitting this appeal. That is not an Appeal of the Assessee but that is of the State. That is against contrary findings and when the provision was not applied though invoked. The circumstances in the order of admitting the Appeal are of no assistance to Mr Raichandani. 12. As a result of above discussion, this Appeal fails and is dismissed. There wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
