“trading stock” includes –

(a)        includes-

(i)      anything produced, manufactured, constructed, assembled, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale or exchange by the taxpayer or on behalf of the taxpayer;

(ii)     anything the proceeds from the disposal of which forms or will form part of the taxpayer’s gross income, otherwise than-

(aa)   in terms of paragraph (j) or (m) of the definition of ‘gross income’;

(bb)   in terms of paragraph 14(1) of the First Schedule; or

(cc)   as a recovery or recoupment contemplated in section 8(4) which is included in gross income in terms of paragraph (n) of the definition of ‘gross income’; or

(iii)    any consumable stores and spare parts acquired by the taxpayer to be used or consumed in the course of the taxpayer’s trade; but

(b)        does not include-

(i)         a foreign currency option contract ;or

(ii)        a forward exchange contract,

as defined in section 24I(1);