Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
The ITAT upheld rejection of the assessee's books of account under section 145(3) because verifiable labour records, third-party confirmations, project-wise details and reconciliations were not produced, and major expenses rested on self-made vouchers with no credible support. Once the accounts were rejected, profit had to be estimated on a fair and reasonable basis, but the Tribunal found the Assessing Officer's 8% rate excessive because it relied on non-comparable listed companies and a section 44AD benchmark that could not be mechanically applied beyond the prescribed turnover limit. Considering the nature of the sub-contract business, remote working conditions and defects in the records, profit was estimated at 5% of turnover.
The ITAT upheld rejection of the assessee's books of account under section 145(3) because verifiable labour records, third-party confirmations, project-wise details and reconciliations were not produced, and major expenses rested on self-made vouchers with no credible support. Once the accounts were rejected, profit had to be estimated on a fair and reasonable basis, but the Tribunal found the Assessing Officer's 8% rate excessive because it relied on non-comparable listed companies and a section 44AD benchmark that could not be mechanically applied beyond the prescribed turnover limit. Considering the nature of the sub-contract business, remote working conditions and defects in the records, profit was estimated at 5% of turnover.
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