What is the ruling regarding declaring the cost price when reselling an item bought at a lower price and subsequently repurchased at the original cost price in a Murabaha transaction?
Chapter on Selling the Musarrah (Animal with milk retained in udder)
Al-Mughni
Book of Sales
Primary text
It is recommended (*mustahabb*) that the seller declares the full situation when reselling an item after engaging in two separate transactions involving profit taking. If the seller informs the buyer only of the initial purchase price (e.g., bought for ten, sold for fifteen, then bought back for ten) without mentioning the intermediate profit, the sale is valid. This position is held by Al-Shafi'i, Abu Yusuf, and Muhammad, as the statement is truthful and contains no deception or fraud against the buyer, resembling a situation where no profit was made. Imam Ahmad preferred the view of Ibn Sirin, who suggested deducting the profit from the subsequent purchase price and stating the cost basis accordingly (e.g., stating the cost basis is five if the profit was five). This is interpreted as a recommendation (*istihbab*).
Supporting text
Abu Hanifa holds that the sale is not permissible as a Murabaha unless the situation is fully explained or the cost basis after deduction is stated (e.g., stating the cost is five). This view is held by Al-Qadi and his associates, based on the principle that Murabaha encompasses antecedent contracts and requires disclosure of what determines the price, similar to disclosed costs for tailoring or shearing.