S.P.Goyal, J.

1. The following three questions have been referred to this court by the Tribunal under Section 256(1) of the I.T. Act, 1961 (for short called "the Act"):

"(1) Whether there was any material before the Tribunal to confirm the addition of Rs. 6,000 which had been sustained by the Appellate Assistant Commissioner out of the cash credit of Rs. 12,000 in the account of Hem Raj as the assessees income from undisclosed sources ?

(2) Whether the payments made for purchase of goods forming stock-in-trade can be termed as expenditure within the meaning of Section 40A(3) of the Income-tax Act, 1961 ?

(3) If the answer to question No. 2 is in the affirmative, whether the Tribunal was justified in maintaining the disallowance and/or addition of Rs. 28,231 in computing the taxable income of the assessee ?"

2. It was frankly conceded by the learned counsel for the assessee that second question stands concluded by three judgments of this court in CIT v. Grewal Group of Industries [1977] 110 ITR 278, CIT v. New Light Tin Manufacturing Company [1980] 121 ITR 229 and CIT v. Kishan Chand Maheshwari Dass [1980] 121 ITR 232. The question is accordingly answered in favour of the Re