Rule 6DD(j) cash payment exemption upheld where Tribunal accepted the assessee's explanation and found genuine transactions.

Cash payments were held to fall within rule 6DD(j) where the Tribunal accepted the assessee's explanation and found the transactions genuine. Because no perversity or lack of supporting material was shown in that factual appreciation, the exemption was available and the assessee was entitled to relief under the rule.

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Issues: Whether, on the findings of fact recorded by the Tribunal, the assessee was entitled to exemption under rule 6DD(j) of the Income-tax Rules, 1962 in respect of the cash payments in question.

Analysis: The Tribunal had accepted the assessee's explanation for the cash payments and had found that the genuineness of the transactions was not in dispute. The question referred was treated as one arising from factual findings, and no perversity or absence of supporting material was shown in the Tribunal's acceptance of the explanation. On that basis, the Tribunal was competent to hold that the assessee fell within the exemption.

Conclusion: The question was answered in the affirmative. The assessee was held entitled to the exemption under rule 6DD(j).

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