https://www.taxtmi.com/caselaws?id=795205 Section 37 places the initial burden on the taxpayer to substantiate business expenditure, but invoices, books, GST records, banking payments and corresponding accepted sales shift the burden to the Revenue to produce cogent evidence that purchases are sham. The notes state that incomplete supplier records alone do not justify disallowance where books are not rejected and no cash trail, accommodation-entry evidence or undisclosed sourcing is established. Where purchases remain insufficiently verifiable but sales are accepted, only embedded profit may be estimated rather than disallowing the full purchase value. They also explain that closing stock is a derived accounting figure and cannot independently support an addition without disproving reconciliations or establishing undisclosed inventory, fictitious purchases, or non-business expenditure. en-us Tue, 14 Jul 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795205 Section 37 places the initial burden on the taxpayer to substantiate business expenditure, but invoices, books, GST records, banking payments and corresponding accepted sales shift the burden to the Revenue to produce cogent evidence that purchases are sham. The notes state that incomplete supplier records alone do not justify disallowance where books are not rejected and no cash trail, accommodation-entry evidence or undisclosed sourcing is established. Where purchases remain insufficiently verifiable but sales are accepted, only embedded profit may be estimated rather than disallowing the full purchase value. They also explain that closing stock is a derived accounting figure and cannot independently support an addition without disproving reconciliations or establishing undisclosed inventory, fictitious purchases, or non-business expenditure. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795205