TMI Blog1978 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... material for stock-in-trade for carrying on the manufacturing or trading business is covered within the meaning of the expression "expenditure" occurring in s. 40A of the I.T. Act, 1961. The Tribunal held that they were outside the purview of this expression and hence s. 40A was not applicable with the result that the amount of such purchases could not be added back. This court in U.P. Hardware ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment for purchases was within or without the ambit of this rule because it took the view that the rule was itself ultra vires of section 40A. In the view we have taken, the rule will be intra vires and, therefore, the question whether the new purchases were or were not covered by r. 6DD will arise now. The Tribunal will address itself to this question on merits, after receiving back our answer. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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