Best judgment assessment – Arbitrary adoption of percentage not admissible

Shri Lakshmanan Vs ITO (ITAT Chennai) It is an admitted fact that the ld. AR for the assessee has filed a letter dated 14.11.2017 and expressed his inability to produce supporting bills and vouchers for various expenditures debited into the profit & loss account. It is also an admitted fact that the ld.AR for the assessee agreed for estimation of profit on gross receipts. Therefore, based on the inability of the ld.AR for the assessee to produce necessary bills and vouchers, the AO has rejected books of accounts u/s.145(3) of the Act and resorted to best judgement assessment as per provisi...