My Doubt Is Regarding The Limit Of Sec 40a (3) ie Rs 10000 For Revenue Expenditure is applicable on Cash Purchases Made By A Trader For Goods In His Stock also?
Pls Answer
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Cash Purchases By Trader Under Sec40a (3)
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Section 40A(3) refers to the expenditure incurred by the assessee in respect of which payment is made. It means all outgoings are brought under the word ‘expenditure’ for the purpose of the sub-section. The expenditure for purchasing the stock-in-trade is one of such outgoings.
Attar Singh Gurmukh Singh v. ITO [1991] 191 ITR 667 (SC).
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