https://www.taxtmi.com/caselaws?id=283225 In block assessment, undisclosed income must be computed from seized material, and additions cannot rest on mere presumption or estimate. Cash expenditure linked to plot No. 33 was allowed because seized papers and surrounding material established the nexus between the project, the negotiating parties, and the cash outgoings, so the payment could be treated as deductible against on-money receipts. A further disallowance under section 40A(3) was not sustained, as undisclosed income in block assessment is computed on the basis of search material and not by applying that disallowance to already assessed cash transactions. The estimated addition for on-money receipts on two flats was deleted because no incriminating seized material supported it. en-us Mon, 13 Feb 2012 00:00:00 +0530 Fri, 13 Sep 2019 15:51:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283225 In block assessment, undisclosed income must be computed from seized material, and additions cannot rest on mere presumption or estimate. Cash expenditure linked to plot No. 33 was allowed because seized papers and surrounding material established the nexus between the project, the negotiating parties, and the cash outgoings, so the payment could be treated as deductible against on-money receipts. A further disallowance under section 40A(3) was not sustained, as undisclosed income in block assessment is computed on the basis of search material and not by applying that disallowance to already assessed cash transactions. The estimated addition for on-money receipts on two flats was deleted because no incriminating seized material supported it. Case-Laws Income Tax Mon, 13 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283225