Cash payment exception under Rule 6DD(b) covers payments to a Government-notified warehouse supplying country spirit.

Cash payment to a Government-notified warehouse supplying country spirit was treated as falling within the exception in Rule 6DD(b) of the Income-tax Rules, 1962, because the warehouse was identified by notification as the authorised source for the relevant goods. The Tribunal's reliance on that notification and on its earlier view in a similar matter was accepted, and the cash transaction was therefore regarded as protected by the statutory exception. The assessee's position was left undisturbed and no interference was made with the Tribunal's conclusion.

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Issues: Whether the assessee's cash payment to a country liquor vending centre fell within the exception under Rule 6DD(b) of the Income-tax Rules, 1962.

Analysis: The payment was examined in the setting of a Government notification identifying the warehouse from which country-spirit was supplied as the authorised warehouse. The Tribunal had relied on that notification and on its earlier view in a similar matter to hold that cash payment to such a notified warehouse came within the protective exception in the rule.

Conclusion: The cash payment was covered by the exception under Rule 6DD(b) of the Income-tax Rules, 1962, and no interference was warranted.

Final Conclusion: The appeal was dismissed, and the Tribunal's view in favour of the assessee was left undisturbed.

Ratio Decidendi: Where cash payment is made to a Government-notified warehouse identified for supply of the relevant goods, such payment may fall within the statutory exception protecting cash transactions.

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