Section 40A(3) provisions not intended to restrict business activities

Sabita Panda Vs ITO ( ITAT Cuttack) In the present case, the assessee is engaged in dealings in mobile recharge vouchers on a wholesale basis and retail basis. During the assessment year under consideration, the assessee made purchases of recharge vouchers from M/s. Stock Point, Puri and the Assessing Officer verified the ledger account of the assessee and found that a large number of payments exceeding Rs.20,000/- were made in cash in contravention of the provisions of section 40A(3) of the I.T.Act, 1961. The Assessing Officer recorded the statement of Shri Upendra Nayak, Prop. Of M/s. sto...