1995 (6) TMI 54

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....he business as a building contractor. Return of income was filed showing total income at Rs. 1,39,630. A revised return was filed under the Amnesty Scheme showing total income at Rs. 2, 10,000. The AO noticed, during assessment proceedings, that certain purchases of iron and steel were required to be verified and, therefore, the assessee was asked to furnish the purchase vouchers. The assessee failed to comply. Certain cash credits were also found in the books of the assessee-firm which also the assessee could not explain. The AO, therefore, applied the net profit rate of 10% and determined the income from contract business at Rs. 2,30,889. It was further noticed that certain payments had been made in cash exceeding Rs. 2,500. Since it was ....

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....s noticed that a total sum of Rs. 80,381 had been paid to M/s. Chawla Steel Corpn. on various dates. A sum of Rs. 3,551 was paid in cash to that firm on 9-8-1983, Rs. 32,840 on 18-2-1984, Rs. 14,000 on 16-3-1984 and Rs. 29,989 on 24-3-1984. The accounting year of the assessee ended on 31-3-1984. Another payment was found to have been made in cash by the assessee to M/s. Khalsa Boring Co. at Rs. 2,716 on 26-3-1984. A total sum of Rs. 60,413 had been paid on four different dates to M/s. Delhi Building Stores, Delhi. Another item related to the cash payment to M/s. Mishra Brothers, Delhi, at Rs. 11,589 on 25-11-1983. Payments in cash to M/s. Sitapur Plywood Mfg. Ltd. had been made at Rs. 5,000 on 23-4-1983 and Rs. 23,471 on 1-6-1983. The asses....