The assessee contended that section 194N was not constitutionally valid and in any case was not applicable to it. The single judge accepted the plea that section 194N was not applicable to the petitioner. On appeal, allowing the appeal, that the judge had proceeded on the basis of an argument that was, in fact, not advanced by the assessees, holding them to be ”business correspondents” of the co-operative societies in disbursal of the Pongal gifts to the banks. This was based on a Government Order in G. O. (2D) No. 66, Co-operation, Food and Consumer Protection (D1) Department dated November 26, 2019, where under, the Government of Tamil Nadu had sanctioned a sum of Rs. 2,363 crores towards Pongal hampers and cash support of Rs. 1,000 to all rice card holders. The Tamil Nadu Civil Supplies Corporation that was appointed as a nodal agency for distribution of the cash support was to co-ordinate with the co-operative societies for the distribution. The conclusion of the judge that the societies had acted as business correspondents of the assessees did not find any support from the records or from any material placed by the assessees. Thus, the conclusion of the judge that the transactions at issue, being cash withdrawals by the societies, and were excluded from the purview of section 194N by virtue of clause (iii) of the third proviso was erroneous.