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2013 (10) TMI 466 - AT - Income TaxAddition on account of bogus expenses - The nature of the business of the assessee is that of government contractor, engaged in road construction, bridge etc. and also a quarry owned by the assessee – Held that:- Assessee has inflated its expenses to a great extent under various heads of the expenses, and has claimed at Rs.50,84,982/- as diesel expenses, and has claimed that it was purchased from M/s.Millan Auto Care. The AO has issued noticed under section 133(6) at the address given by the assessee, but the notice could not be served as the party is not available at the address given by the assessee. The assessee was specifically requested to produce party or furnish its new address on which the notice could be served, but there was no compliance - The AO has recorded that at the address given by the assessee, there is no concern in the name and style of M/s.Millan Auto Care - Disallowed entire diesel expenses claimed to have been incurred by the assessee. Similar defects were found in other claims of expenses of the assessee under various heads of expenses - In the immediately preceding assessment year, the assessee has declared a net profit of 8.8% - Assessee has claimed expenses on the higher side, under various heads of the expenses and not supported by evidences/vouchers, during the year, ends of justice shall be met, if flat rate of 6% net profit is applied to the gross contract receipt of Rs.3.85 crores, without allowing any further deduction on account of depreciation etc. – Decided against the Assessee.
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