https://www.taxtmi.com/caselaws?id=796524 Section 69C requires the assessee to explain the source of expenditure; an addition cannot rest merely on an unsupported allegation that transactions were accommodation entries. Documentary support including stock statements, tax assessment material, purchaser details, sales confirmations, recovery proceedings and bank-funded encashment of letters of credit established the stated source. Rejecting that material without independent inquiry, document verification, examination of beneficiary entities or cogent contrary evidence does not establish unexplained expenditure. Consequently, addition of outstanding letters of credit as unexplained expenditure and consequential taxation under section 115BBE were 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 assessee to explain the source of expenditure; an addition cannot rest merely on an unsupported allegation that transactions were accommodation entries. Documentary support including stock statements, tax assessment material, purchaser details, sales confirmations, recovery proceedings and bank-funded encashment of letters of credit established the stated source. Rejecting that material without independent inquiry, document verification, examination of beneficiary entities or cogent contrary evidence does not establish unexplained expenditure. Consequently, addition of outstanding letters of credit as unexplained expenditure and consequential taxation under section 115BBE were unsustainable. Case-Laws Income Tax Fri, 31 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796524