Is it permissible to sell an item for cash and then buy it back later for a higher price on credit?
Chapter on Selling the Musarrah (Animal with milk retained in udder)
Al-Mughni
Book of Sales
Primary text
According to Ahmad, in the narration of Harb, this transaction is not permissible unless the item is altered. This prohibition exists because the transaction is used as a means to engage in Riba (usury), thus resembling the issue of 'Inah (a specific type of permissible sale used to circumvent Riba prohibition, which is then condemned in this context). If the item is bought back using a different currency, a different commodity, or for less than the original price on credit, the transaction is permissible, based on the reasoning established in the issue of 'Inah.
Supporting text
An alternative view suggests that it is permissible to buy back the item for the same currency at a higher price, unless there is prior collusion or it is deemed a trick (Hilah). If this occurs by chance without intent, it is permissible because the default ruling for sale is permissibility, and the prohibition is only established in the 'Inah scenario due to specific transmitted reports (Athar), and this case does not fully match its meaning. Furthermore, since the means to Riba is more prevalent in the prohibited case, the less severe action should not be treated the same way.