https://www.taxtmi.com/caselaws?id=21442 The case involved a partnership firm disputing the disallowance of cash payments exceeding a specified amount for purchasing stock-in-trade under section 40A(3) of the Income-tax Act. The Supreme Court, referencing precedent, clarified that such payments constitute expenditure falling within the purview of the Act, emphasizing the broad definition of "expenditure." The Court affirmed that these payments for stock-in-trade are considered outgoings affecting gross profits under commercial accounting principles. Consequently, the Court ruled in favor of the Revenue, disallowing the deductions claimed by the assessee without awarding costs. en-us Mon, 10 Aug 1992 00:00:00 +0530 Tue, 24 Nov 2009 13:39:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21442 The case involved a partnership firm disputing the disallowance of cash payments exceeding a specified amount for purchasing stock-in-trade under section 40A(3) of the Income-tax Act. The Supreme Court, referencing precedent, clarified that such payments constitute expenditure falling within the purview of the Act, emphasizing the broad definition of "expenditure." The Court affirmed that these payments for stock-in-trade are considered outgoings affecting gross profits under commercial accounting principles. Consequently, the Court ruled in favor of the Revenue, disallowing the deductions claimed by the assessee without awarding costs. Case-Laws Income Tax Mon, 10 Aug 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21442