Ad hoc expense disallowances fail without identified accounting defects; explained cash sales cannot be taxed twice.

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....Ad hoc disallowance of employee-benefit and business expenditure lacks basis where no expenditure is identified as non-genuine, excessive or non-business, and the books are not rejected; missing vouchers justify item-specific verification, not a blanket estimate. Cash deposits attributed to recorded multi-outlet sales cannot be reclassified as unexplained cash credits without evidence that they comprised Specified Bank Notes or that the underlying books, sales or stock records were defective; taxing recorded receipts again produces double taxation. Loan credits require verification of lender records, immediate source, and repayment or adjustment entries; confirmations, PAN details and banking entries require assessment alongside those records, while unsecured or interest-free terms alone do not justify an addition.....