The High Court held that unless prohibition is introduced against cash dealings, black money generation and circulation cannot be controlled because the disincentives on cash dealings contained under the various provisions of the Income Tax Act have failed to achieve the objective.
The High Court lamented on that: "Unfortunately, the response of the Central Finance Ministry is not at all encouraging inasmuch as Government wants status quo to continue to the detriment of the economic interest of the country and the people as a whole. Our limitations while exercising appellate jurisdiction under section 260A of the Act inhibit us from initiating any proceedings or issuing directions against the Central Government. However, we express our anguish at the attitude of the Central Government to have created this vicious situation and allowed the same to continue." - CIT v. P.D. ABRAHM [2012] 20
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