During search proceedings in the case of a third party, seized documents recorded both cheque and cash payments made to the assessee towards construction contracts. While the assessee admitted the cheque receipts, it denied receipt of cash. The Assessing Officer treated the cash receipts as undisclosed contract receipts and estimated income at 8 per cent under section 44AD. The Tribunal held that the seized documents were corroborated by the statement of the person from whose premises they were recovered and the assessee failed to produce any material to disprove the cash payments or explain their source. The legal objections regarding proceedings under section 153C were also found to be without merit. Since estimation of profit at 8 per cent was reasonable and beneficial to the assessee, the additions were upheld. (AY. 2012-13, 2014-15)