https://www.taxtmi.com/caselaws?id=283009 Cash payments made to a statutorily designated wholesale licensee under the excise payment mechanism were held not to attract disallowance under section 40A(3) because the identity of the payee, genuineness of the transactions, and the regulatory structure prevented the mischief the provision targets; the disallowance was deleted. Stock discrepancies under section 69B were not finally decided because the assessee had not produced excise stock records before the lower authorities, so the matter was remanded for fresh verification by the Assessing Officer. For unrecorded purchases, the addition was confined to the profit element, as the Revenue did not prove that the entire quantity remained in closing stock; the Tribunal directed application of an 8% gross profit rate on the undisclosed sales. en-us Fri, 19 Jan 2018 00:00:00 +0530 Fri, 22 Aug 2025 21:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283009 Cash payments made to a statutorily designated wholesale licensee under the excise payment mechanism were held not to attract disallowance under section 40A(3) because the identity of the payee, genuineness of the transactions, and the regulatory structure prevented the mischief the provision targets; the disallowance was deleted. Stock discrepancies under section 69B were not finally decided because the assessee had not produced excise stock records before the lower authorities, so the matter was remanded for fresh verification by the Assessing Officer. For unrecorded purchases, the addition was confined to the profit element, as the Revenue did not prove that the entire quantity remained in closing stock; the Tribunal directed application of an 8% gross profit rate on the undisclosed sales. Case-Laws Income Tax Fri, 19 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283009