Urgent query on works contract

TELUGU SATYANARAYANA (ADVOCATE and TAX CONSULTANT)   (172 Points)

30 November 2011  

sir,

 

my client is electrical works contractor,he filed his return of income for the Ay 2009-10 it is a tax audit case. the same had been filed u/s 44 AB with in the due date. he had been selected in CASS Scrutiny for the fy 2008-2009. the Ao is bluntly threating as per CBDT Circular and superior officers pressure that he would add the total income, his  base calculation at 8% of the contract reciepts. my client is having provident fund challans and wages paid details apart from that salary registered is maintained.

 

the Ao is harrasing that he will pass an exparte order u/s 144 and he will compute @ 8% on reciepts.

 

can any one pls help me and send some guidelines and judgements regarding the above case.

 

thanking you