1978 (3) TMI 49

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..... expenses incurred by an assessee in purchasing its raw material for stock-in-trade for carrying on the manufacturing or trading business is covered within the meaning of the expression "expenditure" occurring in s. 40A of the I.T. Act, 1961. The Tribunal held that they were outside the purview of this expression and hence s. 40A was not applicable with the result that the amount of such purchases .....

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..... dressed itself to the question whether any individual payment for purchases was within or without the ambit of this rule because it took the view that the rule was itself ultra vires of section 40A. In the view we have taken, the rule will be intra vires and, therefore, the question whether the new purchases were or were not covered by r. 6DD will arise now. The Tribunal will address itself to thi .....

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