1977 (7) TMI 2

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..... p 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 amounts as allowable deductions, whereupon a question arose whether payments made in cash in excess of Rs. 2,500 at a time could be claimed as deductions in view of the provisions contained i .....

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..... ssessee, 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 section 40A(3). The Tribunal not having discussed this question in its judgment, the High Court is apparently justified in its view that the question did not arise out of the Tribunal's judgment. .....

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..... bunal 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" within the meaning of section 40A(3). On the other hand, learned counsel for the revenue has drawn our attention to the judgment of the Orissa High Court in Sajowanlal Jaiswal v. Commissioner of In .....

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