40A(3) Cash payment for purchase by poultry farm

hi friends,

Can a poultry farm make payment in excess of Rs 20,000. in cash for the purchases made.?

Rule 6 DD says...

(e)  where the payment is made for the purchase of—

       (i)  agricultural or forest produce; or

      (ii)  the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or"

is this only for the payment for purchase produce of poultry farming or it includes purchase by the poultry farm,

Please clarify.

Thank You.

Uday

the concept of such exemption is for 

a) where no bank is situated nearby the forest/ the deal is on banking holidays and till the time of clearing of payment the agro/ forest product may get damaged / unusable. 

b) animal / poltry products are perishable, and time taken in bank clearence may damage the products, so the seller insists on cash only

hence, the payment is exempted towards "purchase" of such products only, not for business related expenses in production of such products.