https://www.taxtmi.com/caselaws?id=35563 Manipulated cheque transactions involving conversion of account-payee cheques into bearer cheques, diversion of funds and cash return to the assessee were treated as expenditure hit by the prohibition in section 40A(3) of the Income-tax Act, because payment otherwise than by account-payee cheque or bank draft disqualifies the deduction. The Court further held that where the materials were directly traceable to search findings and had not been disclosed in the regular return, the resulting addition was sustainable in block assessment as undisclosed income. The challenge that the addition was unrelated to search proceedings was rejected, and the Revenue's stand was upheld. en-us Fri, 04 Dec 2009 00:00:00 +0530 Thu, 15 Mar 2012 16:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35563 Manipulated cheque transactions involving conversion of account-payee cheques into bearer cheques, diversion of funds and cash return to the assessee were treated as expenditure hit by the prohibition in section 40A(3) of the Income-tax Act, because payment otherwise than by account-payee cheque or bank draft disqualifies the deduction. The Court further held that where the materials were directly traceable to search findings and had not been disclosed in the regular return, the resulting addition was sustainable in block assessment as undisclosed income. The challenge that the addition was unrelated to search proceedings was rejected, and the Revenue's stand was upheld. Case-Laws Income Tax Fri, 04 Dec 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35563