2003 (2) TMI 420

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....ns of section 145(1) and the estimated GP rate of 8 per cent applied by the Assessing Officer was quite fair and reasonable keeping in view the assessee's total inability to properly correlate the various expenses incurred with each different site of works. 2. In deleting the addition of Rs. 1,50,000 on account of non-genuine purchases despite the fact that the alleged seller had denied having made any such sale to the assessee." 2. At the time of hearing of the appeal the submission of the ld. AR for the assessee was that the provisions of section 145 of the IT Act have wrongly been invoked by the assessee. It was the case of the assessee that the provisions of section 145 of the IT Act can only be invoked when there is a defect in the b....

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.... had executed the work of bigger magnitude and in a work of bigger magnitude cost factor are more and profitability lesser while in the intervening years the assessee had executed the work of smaller magnitude in which there is more profitability. The ld. AR would further contend that for the year 1991-92 the total cost of the work executed was 177 lakhs while in the year under consideration the work executed was to the tune of 209.50 lakhs. According to the ld. AR any work of bigger magnitude when it is taken on various stretches the co-relation of the construction material and payment of wages is a difficult. The ld. AR would further contend that the Assessing Officer had verified 80 to 90 per cent of the purchases by issuing summons to v....