1977 (7) TMI 2

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... -7-1977 - Judge(s) : Y. V. CHANDRACHUD. and P. S. KAILASAM. JUDGMENT CHANDRACHUD J.-- The assessee-firm, which is the appellant before us, does business in brass and copper scrap on a wholesale basis. It purchased metal scrap during the assessment year 1970-71, for which it paid a sum of Rs. 2,46,625 consisting of various items, each one of which exceeded Rs. 2,500. It claimed these amo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assessee. The order of the High Court dismissing the application for reference is challenged by the assessee in this appeal by special leave. Mr. Singhania, who appears on behalf of the assessee, contends that the Tribunal's judgment raises an important question of law, viz., whether payments made by the assessee in purchasing scrap metal for resale is "expenditure" within the meaning of secti .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... se out of the Tribunal's judgment which should be referred for the opinion of the High Court. A judgment dated November 29, 1973, rendered by the Delhi Bench of the Income-tax Appellate Tribunal in I.T.A. No. 5456 of 1972-73 shows that various Benches of the Tribunal have consistently taken the view that payments made for the purchase of stock-in-trade or raw material is not "expenditure" withi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X