https://www.taxtmi.com/caselaws?id=120404 Unexplained investment in closing stock could not be sustained where the books were not found defective, the stock statement given to the bank was not independently verified, and the higher figure was plausibly explained as inflated for credit facilities; the addition was deleted. Commission expenditure paid through banking channels and supported by recipient responses and business explanation was treated as genuine, and the disallowance was deleted. A cash credit of Rs. 1 lakh required further verification because creditworthiness was not fully established and later repayment or adjustment needed examination; the matter was remitted. Ad hoc disallowance of car and telephone expenses was upheld because no logbook or comparable material showed exclusive business use. en-us Fri, 19 Sep 2008 00:00:00 +0530 Sat, 09 Dec 2023 19:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120404 Unexplained investment in closing stock could not be sustained where the books were not found defective, the stock statement given to the bank was not independently verified, and the higher figure was plausibly explained as inflated for credit facilities; the addition was deleted. Commission expenditure paid through banking channels and supported by recipient responses and business explanation was treated as genuine, and the disallowance was deleted. A cash credit of Rs. 1 lakh required further verification because creditworthiness was not fully established and later repayment or adjustment needed examination; the matter was remitted. Ad hoc disallowance of car and telephone expenses was upheld because no logbook or comparable material showed exclusive business use. Case-Laws Income Tax Fri, 19 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120404