The assessee, a partnership firm engaged in retail liquor business, had failed to file its return due to serious health issues of both partners. The assessment was completed ex-parte, treating cash deposits in bank as unexplained money and liquor purchases as unexplained expenditure. The movement of funds in the bank account clearly demonstrates a complete circulation of business receipts towards business purchases, leaving no unexplained surplus. In a liquor business, where retail sales are predominantly cash-based and prices are regulated by the State, such cash deposits are a normal commercial incident. ), wherein the Hon’ble Bangalore ITAT held that in liquor business, purchases from State Beverages Corporation cannot be treated as unexplained expenditure.