47. The
term ‘expenditure’ refers to any payment made by assessee, and is not confined
to expenditure deductible under section 37 - Sajowanlal Jaiswal v. CIT
[1976] 103 ITR 706 (Ori.). It will cover payments for acquisition of
stock-in-trade or raw materials - Attar Singh Gurmukh Singh v. ITO
[1997] 191 ITR 667 (SC). Even advances made for purchase of goods are
covered - Kejriwal Iron Stores v. CIT [1988] 169 ITR 12
(Raj.). Payments by film distributor for acquisition of distribution rights are
covered - Akash Films v. CIT [1991] 190 ITR 32 (Kar.). However,
payments representing loans or their repayments are not covered - Press Note
dated 2-5-1969/Letter F. No. 1(22)/69-TPL (Pt.), dated 18-4-1969. For
details, see Taxmann’s Master Guide to Income-tax Rules.