Court Limits Expense Disallowance to 1% of Turnover Due to Lack of Evidence, Despite Assessee's Claims of Losses.

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....Disallowance of expenses - Self made vouchers - cash expenditure - The reason given by the assessee that the loss is due to depreciation on trucks, the same could have been explained before the lower authorities which has not been done by the assessee but the expenses incurred is not proved with proper evidences and mostly done by cash mode. After going through the order of the learned CIT(A), we are not in agreement with the order of the learned CIT(A) in estimating the profit at 0.60% on the net profit when the assessee has not produced any evidences on the claim of expenses. In the above circumstances, we are of the considered opinion that it would serve the interest of justice, if we restrict the disallowance to 1% of the total turnover - AT....