https://www.taxtmi.com/caselaws?id=9735 Disallowance of supervisory charges under section 40A(2) does not, by itself, make the amount undisclosed income for block assessment under Chapter XIV-B. A mere finding that related-party expenditure is excessive or unreasonable under fair market value, business need, or benefit derived is not enough; the claim must also be shown to be false or bogus for section 158B(b) to apply. Here, although the authorities treated the charges as not genuine business expenditure, they did not record a categorical finding that the claim was false. On that basis, the amount could not be assessed as undisclosed income. en-us Tue, 14 Mar 2006 00:00:00 +0530 Tue, 30 Jun 2009 10:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9735 Disallowance of supervisory charges under section 40A(2) does not, by itself, make the amount undisclosed income for block assessment under Chapter XIV-B. A mere finding that related-party expenditure is excessive or unreasonable under fair market value, business need, or benefit derived is not enough; the claim must also be shown to be false or bogus for section 158B(b) to apply. Here, although the authorities treated the charges as not genuine business expenditure, they did not record a categorical finding that the claim was false. On that basis, the amount could not be assessed as undisclosed income. Case-Laws Income Tax Tue, 14 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9735