TMI Blog2011 (11) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... constitution of the Union does not permit individual producers to be its members. Therefore, the Union, by no stretch of imagination, can be considered to be a producer of the milk. Therefore, benefit of rule 6DD is not available - Decided against the Assessee. - ITA No.16 of 2005 - - - Dated:- 30-11-2011 - Mr. Justice Deepak Gupta, Judge, Mr. Justice V.K. Ahuja, Judge, JJ. For the Appellant : Mr. M.M. Khanna, Senior Advocate, with Mr. Vayur Gautam, Advocate. For the Respondents : Mr. Vinay Kuthiala Ms Vandana Kuthiala, Advocates. Deepak Gupta, Judge Though this Income Tax Appeal was admitted on a large number of questions of law formulated by the appellant, at the time of hearing we find that only the following ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made where any payment in a sum exceeding twenty thousand rupees is made otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft, in such cases and under such circumstances as may be prescribed, having regard to the nature and extent of banking facilities available, consideration of business expediency and other relevant factors. Rule 6DD. Cases and circumstances in which payment in a sum exceeding twenty thousand rupees may be made otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft.- No disallowance under sub-section (3) of Section 40A shall be made where any payment in a sum exceeding twenty thousand rupees is made otherwise than by a crossed cheque drawn on a bank or by a crossed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Fakri Automobiles versus CIT (1986) 160 ITR 504 and Patna High Court in CIT versus Ram Chand Gobind Prasad (1985) 156 ITR 766, took the view that under Section 40A(3) money spent on purchase of stockintrade also amounted to expenditure. We are in agreement with all the High Courts other than Gauhati High Court and are of the considered opinion that even when moneys are paid/spent for purchase of stock-intrade then also the provisions of Section 40A(3) will apply since this amounts to expenditure. Accordingly, the first question is answered against the assessee and in favour of the revenue. 5. Now, coming to the second question, the sole issue is whether the Hoshiarpur District Co-operative Milk Producers Union Ltd. can be treated to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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