56. The
words “cultivator, grower or producer” occurring at the end of this sub-rule
qualify the words occurring in all the preceding four sub-clauses, and not
merely sub-clause (iv)—CIT v. Pehlaj Rai Daryanmal [1991]
190 ITR 242 (All.). Exclusion to operate even if product has undergone any
change - Press Note dated 2-5-1969. Payments to middlemen are not
covered - Letter F.No. 1/22/69-TPL (Pt.), dated 18-4-1969. Exception
will not be available on purchase of hides and skins from a person who is not
proved to be the producer of the goods—Ideal Tannery v. CIT
[1979] 117 ITR 34 (All.). Purchase of Dhania (an agricultural produce)
is eligible for the exception—Kanti Lal Purshottam & Co. v. CIT
[1985] 155 ITR 519 (Raj.). Exception will not apply to payments made to
“arhatiyas”—Circular No. 34, dated 5-3-1970. See also Press release,
dated 2-5-1969. For details, see Taxmann’s Master Guide to Income-tax
Rules.