The assessee had a mismatch between purchases in VAT returns and audited accounts due to statutory VAT adjustments regarding input tax credit reversal on returned goods. The Assessing Officer made an addition under section 69C of the Act. CIT(A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that since assessee provided supplier-wise reconciliation showing the difference was due to statutory compliance rather than actual inflation or bogus purchases, and sales figures were otherwise consistent, the disallowance of such difference as unexplained expenditure was deleted.   (AY. 2017-18)