https://www.taxtmi.com/caselaws?id=786553 Unexplained expenditure rules treat the source of expenditure as decisive; where purchases are recorded in regular audited books and the assessee substantiates the source with invoices, bank statements and independently authenticated export documentation, Section 69C cannot be invoked to treat those purchases as unexplained. Non-response by creditors to enquiries under statutory notice provisions, without rejection of books or material showing falsity, does not justify an adverse inference converting recorded purchases into unexplained expenditure. Applying these principles, the addition treating recorded purchases as unexplained is unsustainable and is deleted, resulting in a decision for the assessee. en-us Wed, 11 Feb 2026 00:00:00 +0530 Sat, 14 Feb 2026 08:29:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786553 Unexplained expenditure rules treat the source of expenditure as decisive; where purchases are recorded in regular audited books and the assessee substantiates the source with invoices, bank statements and independently authenticated export documentation, Section 69C cannot be invoked to treat those purchases as unexplained. Non-response by creditors to enquiries under statutory notice provisions, without rejection of books or material showing falsity, does not justify an adverse inference converting recorded purchases into unexplained expenditure. Applying these principles, the addition treating recorded purchases as unexplained is unsustainable and is deleted, resulting in a decision for the assessee. Case-Laws Income Tax Wed, 11 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786553