1978 (3) TMI 49 - HC - Income Tax

Summary

The High Court of Allahabad ruled that expenses incurred by an assessee in purchasing raw material for stock-in-trade are considered "expenditure" under section 40A of the Income Tax Act, disallowing cash payments exceeding Rs. 2,500. The court also found that the Tribunal must determine if payments for purchases fall within the scope of rule 6DD(j). The Commissioner was awarded costs of Rs. 200.