TaxTMI 
TaxTMI 
1979 (8) TMI 61
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....ing question of law has been referred to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the word ' expenditure ' used in section 40A(3) of the Income-tax Act does not cover expenditure on purchase of raw material ? " The assessee known as M/s. New Light Tin Manufacturing Company, Sonepat, is a firm engaged in the business a....
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....ea that he had to purchase a quantity of tin plates for his manufacturing business, in addition to the quota allotted to him by the Government, from other quota-holders at a premium and that those quota-holders would not agree to accept payment by cheque or bank drafts as they were violating the law in not utilising their quota of tin plates for their own manufacturing business, was not considered....
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....o the Tribunal, the terms " expenditure " as used in the said s. 40A related only to those expenses, regarding which a question as to their deduction out of the gross profits arises. Taking this view of the matter, the Tribunal allowed the appeal and held the expenditure in question as allowable. The question of law referred to this court has already been dealt with in a judgment of this court in....