1978 (3) TMI 57

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.... deals in sale of stone, timber and timber goods. For the assessment year 1970-71, the ITO disallowed a sum of Rs. 22,964 which represented purchases made by the assessee for its stock-in-trade but which were made in cash although the individual payments exceeded Rs. 2,500. It was held that s. 40A(3) of the Act applied and the assessee has failed to come within any of the exceptions of r. 6DD of t....

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.... opinion: " Whether, on the facts and in the circumstances of the case and on a proper interpretation of s. 40A of the I.T. Act, 1961, the purchase price of stock-in-trade by an assessee can be said to constitute an item of expenditure, the deductibility of which would be restricted by the provisions of s. 40A(3) ? " In U. P. Hardware Store v. CIT [1976] 104 ITR 664 (All), a Division Bench o....