TaxTMI 
TaxTMI 
2018 (10) TMI 869
X X X X Extracts X X X X
X X X X Extracts X X X X
....vidual, engaged in the business of sale of Kerosene purchased it from the notified dealers for onward sale to the ration card holders. During the year, the Assessee made purchase of Kerosene to the tune of Rs. 55,93,673/- from M/s. Baldawa and Company and other companies. In this case we are concerned with the sale of Kerosene and purchase thereof by the Assessee from M/s Baldawa and Company. That was subject of scrutiny assessment. The Assessing Officer noticed that the Assessee purchased Kerosene from the said company to the tune of Rs. 39,00,960/-. He made payment to the seller, both by way of cheque as also cash. The cash segment out of Rs. 39,00,960/- works out to Rs. 36,16,500/-. The details of cash payment were tabulated and the Asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her Appeal to the Tribunal at the instance of the Assessee. 8. The Tribunal found from the concurrent orders that this is not a case where there is any stipulation in the order of the Government and made by the District Supply Officer. That order facilitates the consumer for whose benefit the Public Distribution System is made so that the essential commodity reaches him expeditiously. At the ration shop, the Kerosene was to be sold to the ration card holders. At the ration shop, therefore, there should be adequate stock of Kerosene. Hence, on the number of ration card holders the individual ration shops were directed to book their orders and upon booking of the orders within three days, the agents were to supply the Kerosene/essential comm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f 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 cor....