https://www.taxtmi.com/caselaws?id=796524 Section 69C requires the taxpayer to fail to explain the source of expenditure or provide an unsatisfactory explanation. Documentary material such as stock statements, tax assessment records, purchaser details, sales confirmations and recovery proceedings supported the letters of credit transactions. The notes state that treating transactions as accommodation entries, without independent inquiry, document verification, examination of beneficiary entities or cogent contrary evidence, does not establish unexplained expenditure. Bank-funded encashment of letters of credit may also demonstrate the stated source. On this analysis, addition of outstanding letters of credit under Section 69C and consequential taxation under Section 115BBE were described as unsustainable. en-us Fri, 31 Jul 2026 00:00:00 +0530 Thu, 06 Aug 2026 09:11:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796524 Section 69C requires the taxpayer to fail to explain the source of expenditure or provide an unsatisfactory explanation. Documentary material such as stock statements, tax assessment records, purchaser details, sales confirmations and recovery proceedings supported the letters of credit transactions. The notes state that treating transactions as accommodation entries, without independent inquiry, document verification, examination of beneficiary entities or cogent contrary evidence, does not establish unexplained expenditure. Bank-funded encashment of letters of credit may also demonstrate the stated source. On this analysis, addition of outstanding letters of credit under Section 69C and consequential taxation under Section 115BBE were described as unsustainable. Case-Laws Income Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796524