The estimation of income made by the AO without disclosing the materials relied on and also denying assessee an opportunity was not only in violation of the statutory provisions but also in violation of the principles of natural justice.
In the case M/s. Podikunju Musaliar Memorial Educational& Charitable Trust Chandanathope, Kollam Versus Commissioner of Income Tax-KERALA HIGH COURT
Search and seizure under Section 132 of the Income-tax Act has been conducted in the premises of the assessee. After completing all procedural formalities, assessments for the years 2003-04 to 2009-10 were reopened. Accordingly, the assessments were completed where, rejecting the books of accounts of the assessee and estimated the gross profit at 40% of the gross receipts and estimated the net profit at 15% of the gross receipts. Continue reading