Where the block assessment order was passed by the AO. During the search proceedings the AO discovered that several payments were made by assessee in contravention of section 40A(3) and accordingly made additions to the assessee’s income. The same had been disallowed, as addition u/s.40A(3) could not be made in the computation of undisclosed income u/s.158BC of the Act.  Followed Dhanvarsha Builders & Development v. DCIT (2006) 105 TTJ 376 (Pune)(Trib). (AY. 1997-98 to 2002-03)