1978 (3) TMI 57 - HC - Income Tax

Summary

The High Court of Allahabad held that purchases made in cash exceeding Rs. 2,500 for stock-in-trade can be disallowed under section 40A(3) of the Income Tax Act. The Tribunal's decision to disallow such purchases was upheld based on the wide interpretation of the word "expenditure." The court ruled in favor of the department, citing a previous Division Bench decision. The Commissioner was awarded costs of Rs. 200.