Estimation of income in the hands of accommodation entry provider under Income tax Act.

Assesseee is trader of goods and duly register under GST Act. During the course of search of other party , cheque book of the assessee has been found and even accountant of the assessee has accepted that the sales effected to party are only accommodation entry.  Ao during the course of assessement of assesssee has rejected books of accounts of the assessee and proposed to tax 5% of total transcation with the party where search conducted as estimated income in the hands of assessee . Is action of the AO is justified and whether assessee can submit that the 5%…

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  Rejection of books of accounts and applying 8% on sale to compute Income and passed ex parte assessment oreder

Ld AO passed ex parte assessment order without considering the part reply filed by assessee by rejecting books of accounts alleging that assesee has not produced books of accounts by applying 8% rate on sale even the case was not time barred.

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