https://www.taxtmi.com/caselaws?id=37920 Section 40A(3) uses the term "expenditure" in a wide sense and is not limited to overhead or similar deductible items. It covers payments made for purchases that form part of stock-in-trade and enter the computation of gross profit. Cash payments for such purchases exceeding the statutory limit are therefore liable to disallowance unless they fall within the exceptions in rule 6DD. The issue was answered in favour of the Revenue, confirming that purchase price of stock-in-trade is expenditure for section 40A(3). en-us Mon, 06 Mar 1978 00:00:00 +0530 Fri, 02 Apr 2010 12:03:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37920 Section 40A(3) uses the term "expenditure" in a wide sense and is not limited to overhead or similar deductible items. It covers payments made for purchases that form part of stock-in-trade and enter the computation of gross profit. Cash payments for such purchases exceeding the statutory limit are therefore liable to disallowance unless they fall within the exceptions in rule 6DD. The issue was answered in favour of the Revenue, confirming that purchase price of stock-in-trade is expenditure for section 40A(3). Case-Laws Income Tax Mon, 06 Mar 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37920