Undisclosed income and concealment findings in books and audited accounts left no substantial question of law for interference.

The Tribunal deleted the addition as undisclosed income because the transaction was recorded in the assessee's books, disclosed in the audited balance-sheet, and supported by surrounding facts indicating bona fide belief in its genuineness, including cheque payment and insurance premium deposits. On those findings, there was no concealment within section 158B(b) of the Income-tax Act, so the amount could not be treated as undisclosed income. The High Court treated the Tribunal's conclusions as findings of fact and held that no substantial question of law arose for interference under section 260A.

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Issues: Whether the Tribunal was justified in deleting the addition treated as undisclosed income on the ground that there was no concealment within the meaning of section 158B(b) of the Income-tax Act, 1961, and whether any substantial question of law arose under section 260A of the Income-tax Act, 1961.

Analysis: The Tribunal found that the transaction had been recorded in the assessee's books of account and reflected in the audited balance-sheet. It also accepted the assessee's bona fide belief that the transaction was genuine, supported by surrounding circumstances such as payment by cheque and insurance premium deposits. On these facts, the Tribunal held that the case did not involve concealment of income as contemplated by section 158B(b), and that the amount could not be assessed as undisclosed income. The High Court treated these findings as findings of fact and held that no substantial question of law arose for interference under section 260A.

Conclusion: The addition as undisclosed income was rightly deleted and the Revenue's appeal was not maintainable on any substantial question of law.

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