https://www.taxtmi.com/caselaws?id=22214 The High Court interpreted section 40A(3) of the Income-tax Act, 1961, ruling that amounts spent by the assessee on purchasing goods for resale constitute expenditure under the provision. The court emphasized that the term "expenditure" has a broad scope beyond overhead expenses, encompassing expenses relevant to determining gross profit, including stock-in-trade purchases. Upholding the legislative intent to ensure transparency in business transactions and prevent the use of unaccounted money, the court held in favor of the Revenue, affirming that such amounts should be considered as expenditure under section 40A(3). en-us Fri, 08 Mar 1991 00:00:00 +0530 Tue, 08 Dec 2009 11:32:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22214 The High Court interpreted section 40A(3) of the Income-tax Act, 1961, ruling that amounts spent by the assessee on purchasing goods for resale constitute expenditure under the provision. The court emphasized that the term "expenditure" has a broad scope beyond overhead expenses, encompassing expenses relevant to determining gross profit, including stock-in-trade purchases. Upholding the legislative intent to ensure transparency in business transactions and prevent the use of unaccounted money, the court held in favor of the Revenue, affirming that such amounts should be considered as expenditure under section 40A(3). Case-Laws Income Tax Fri, 08 Mar 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22214