https://www.taxtmi.com/caselaws?id=38641 The High Court of Punjab and Haryana ruled that payments made for the purchase of goods constitute "expenditure" under u/s 40A(3) of the Income-tax Act. The Court rejected the assessee's argument that such payments for raw material did not qualify as expenditure since the amount spent returned in the form of stock-in-trade. Emphasizing the legislative intent to curb tax evasion through cash expenditures, the Court held that payments for goods purchased fall within the ambit of "expenditure" under u/s 40A(3), aligning with precedents set by other High Courts. en-us Thu, 04 Nov 1976 00:00:00 +0530 Wed, 07 Apr 2010 18:05:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38641 The High Court of Punjab and Haryana ruled that payments made for the purchase of goods constitute "expenditure" under u/s 40A(3) of the Income-tax Act. The Court rejected the assessee's argument that such payments for raw material did not qualify as expenditure since the amount spent returned in the form of stock-in-trade. Emphasizing the legislative intent to curb tax evasion through cash expenditures, the Court held that payments for goods purchased fall within the ambit of "expenditure" under u/s 40A(3), aligning with precedents set by other High Courts. Case-Laws Income Tax Thu, 04 Nov 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38641