https://www.taxtmi.com/caselaws?id=55572 In block assessment, unaccounted gross receipts cannot be taxed as such; only the undisclosed income embedded in those receipts may be assessed. A seized paper indicating cash collections on flat sales supported the inference of on-money receipts, but Chapter XIV-B did not permit addition of the entire gross amount as undisclosed income. The assessee's material showing prior payments, land-related expenditure and construction cost also undermined any separate initial investment addition. The correct approach was to estimate only the profit element from the receipts, and that estimated profit was found to be lower than the disclosure already offered by the assessee, so the proposed addition was deleted. en-us Wed, 02 Sep 1998 00:00:00 +0530 Sat, 27 Nov 2010 17:46:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55572 In block assessment, unaccounted gross receipts cannot be taxed as such; only the undisclosed income embedded in those receipts may be assessed. A seized paper indicating cash collections on flat sales supported the inference of on-money receipts, but Chapter XIV-B did not permit addition of the entire gross amount as undisclosed income. The assessee's material showing prior payments, land-related expenditure and construction cost also undermined any separate initial investment addition. The correct approach was to estimate only the profit element from the receipts, and that estimated profit was found to be lower than the disclosure already offered by the assessee, so the proposed addition was deleted. Case-Laws Income Tax Wed, 02 Sep 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55572