He was also asked:

A man sells a commodity for a deferred price, then buys it back from the purchaser for a lower price paid immediately. Is this permissible or not?

He replied:

If someone sells a commodity on deferred payment and buys it back from the purchaser for a lower price paid immediately, this is known as an “‘īnah transaction.” It is impermissible according to most scholars, including Abū Hanīfah, Mālik, Ahmad, and others. This is also the position transmitted from the Companions, including ‘Ā’ishah, Ibn ‘Abbās, and Anas ibn Mālik. Ibn ‘Abbās was asked about a piece of silk sold on deferred payment and then bought back for less. He said:

“Dirhams in exchange for dirhams, with a piece of silk coming between them.”

More emphatically still, Ibn ‘Abbās said:

“If you assess its cash value and then sell it on deferred payment, that is dirhams in exchange for dirhams.”

He thus explained that if someone values the commodity in dirhams and then sells it on deferred payment, his aim is to exchange dirhams for dirhams—and actions are judged by intentions. This is called “tawarruq.” Sometimes the purchaser buys the commodity to make use of it. At other times, he buys it