Cash vs cheque transactions

Hello,

I am a trader cum exporter, most of the items I buy have to be paid in Cash, and since I export most of my items, I receive the payments through wire.

I have heard that Cash transactions are not allowed by Income Tax, but I have no other option as the items I am dealing with are sold on Hard Cash, there is no cheque / dd or NEFT because of the risks involved. The trading amount is from 500 - 60,000 on cash

Can you please tell me how to file my accounts in such condition.

Thanks