https://www.taxtmi.com/caselaws?id=71692 On block assessment arising from search, the dominant issue was whether the shortfall between physical stock and book stock justified addition as undisclosed income. Since lesser stock implied suppressed sales, recasting the trading account required a corresponding increase in sales and decrease in closing stock, eliminating any separate stock addition; only the gross profit element on suppressed sales could be taxed, so the addition was restricted to 15% of the stock shortfall (Rs. 30,000) and the balance deleted. A further issue was whether entries already recorded in regular books could be treated as "undisclosed income" under s. 158B; applying the statutory definition, such recorded entries were held outside the scope, and the entire addition on that ground was deleted, allowing the appeal. en-us Tue, 06 Apr 1999 00:00:00 +0530 Thu, 01 Jan 2026 00:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71692 On block assessment arising from search, the dominant issue was whether the shortfall between physical stock and book stock justified addition as undisclosed income. Since lesser stock implied suppressed sales, recasting the trading account required a corresponding increase in sales and decrease in closing stock, eliminating any separate stock addition; only the gross profit element on suppressed sales could be taxed, so the addition was restricted to 15% of the stock shortfall (Rs. 30,000) and the balance deleted. A further issue was whether entries already recorded in regular books could be treated as "undisclosed income" under s. 158B; applying the statutory definition, such recorded entries were held outside the scope, and the entire addition on that ground was deleted, allowing the appeal. Case-Laws Income Tax Tue, 06 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71692