1991 (8) TMI 5 - SUPREME COURT - Income Tax

Head Note / Extract:
Payments in cash exceeding a sum of ₹ 2,500 for some of the purchases of stock-in-trade. - the payments are not allowed as deductions in the computation of income under the head "Profits and gains of business". The payments are held to be in contravention of the terms of section 40A (3) - validity of section 40A(3) - applicability of Section 40A(3) to payments made for acquiring stock-in-trade