https://www.taxtmi.com/caselaws?id=797856 Cash-expenditure disallowance requires evidence of an actual prohibited cash payment to an identifiable person; a presumption that purchases from an alleged accommodation-entry provider were made in cash is insufficient. Where purchase and sales records, quantitative details, stock particulars and corresponding export sales are accepted, and the books are not rejected, purchases cannot be disallowed merely because the recorded supplier's identity is disputed. An unpaid supplier balance reflecting accepted purchase transactions is a trade credit, not unexplained cash credit, where no money was received during the year. Taxing both purchases and the corresponding trade payable would create a double addition. en-us Fri, 21 Aug 2026 00:00:00 +0530 Fri, 28 Aug 2026 20:42:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797856 Cash-expenditure disallowance requires evidence of an actual prohibited cash payment to an identifiable person; a presumption that purchases from an alleged accommodation-entry provider were made in cash is insufficient. Where purchase and sales records, quantitative details, stock particulars and corresponding export sales are accepted, and the books are not rejected, purchases cannot be disallowed merely because the recorded supplier's identity is disputed. An unpaid supplier balance reflecting accepted purchase transactions is a trade credit, not unexplained cash credit, where no money was received during the year. Taxing both purchases and the corresponding trade payable would create a double addition. Case-Laws Income Tax Fri, 21 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797856