Sir!
Our client is engaging in purchase of scrap Kraft waste paper from unorganised sector. The suppliers are paid in cash. The commodity dealt in with the question is such that it is not possible to get purchase bills etc.
The said commodity is in turn sold to paper Mills who after recycling the same convert it in to finish paper.
The A.O. made addition on adhoc percentage of total purchases while passing the assessment order. In A.O., the section under which the disallowance is made is not mentioned. The same treatment is given to the group of 11 assessment orders having same nature of business.
The above order was passed by I.T.O. on instruction from addl. C.I.T. who took biased view in all above cases.
BEFORE C.I.T. (APPEAL)
Is there any recent case law by which we can take plea for applying Section 145 for rejection of accounts & estimate income on G.P. / N.P. rate basis AND / OR any other ground for defense is available?
Kindly let us know.
Regards!
CA Laxmi Mittal
lnmittal @ dataone.in
CAclubindia
