https://www.taxtmi.com/highlights?id=103810 Contemporaneous invoices, GST returns, bank statements and ledger accounts can substantiate labour and manpower expenditure where payments pass through banking channels, tax is deducted at source, and transactions appear in GST records and audited accounts. A vendor's failure to respond to a notice, particularly after being struck off, does not by itself establish that expenditure is unexplained when the supporting evidence remains unrebutted and no further enquiry is undertaken. Purchases included in closing stock and returned in the following year do not affect income where no supplier payment or expenditure claim is made and related GST input is reversed. On these facts, both additions for unexplained expenditure were deleted. en-us Wed, 16 Sep 2026 08:38:35 +0530 Wed, 16 Sep 2026 08:38:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=103810 Contemporaneous invoices, GST returns, bank statements and ledger accounts can substantiate labour and manpower expenditure where payments pass through banking channels, tax is deducted at source, and transactions appear in GST records and audited accounts. A vendor's failure to respond to a notice, particularly after being struck off, does not by itself establish that expenditure is unexplained when the supporting evidence remains unrebutted and no further enquiry is undertaken. Purchases included in closing stock and returned in the following year do not affect income where no supplier payment or expenditure claim is made and related GST input is reversed. On these facts, both additions for unexplained expenditure were deleted. Highlights Income Tax Wed, 16 Sep 2026 08:38:35 +0530 https://www.taxtmi.com/highlights?id=103810