https://www.taxtmi.com/caselaws?id=37133 The High Court of Kerala upheld the disallowance of cash payments exceeding Rs. 2,500 made by a registered firm for the purchase of textiles under section 40A(3) of the Income-tax Act, 1961. The court ruled that such payments should not be considered as expenditure but rather as part of the cost of goods sold, emphasizing the literal interpretation of the section. The judgment affirmed the increased income assessment for the firm, with the case being referred back to the Income-tax Appellate Tribunal for further proceedings. en-us Wed, 19 Feb 1975 00:00:00 +0530 Fri, 26 Mar 2010 16:54:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37133 The High Court of Kerala upheld the disallowance of cash payments exceeding Rs. 2,500 made by a registered firm for the purchase of textiles under section 40A(3) of the Income-tax Act, 1961. The court ruled that such payments should not be considered as expenditure but rather as part of the cost of goods sold, emphasizing the literal interpretation of the section. The judgment affirmed the increased income assessment for the firm, with the case being referred back to the Income-tax Appellate Tribunal for further proceedings. Case-Laws Income Tax Wed, 19 Feb 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37133