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"Return of income was filed on 31.3.2006 disclosing taxable income for Rs.4,22,540/-, which was duly processed u/s. 143(1) on 17.5.2006 at returned income. The assessment for the year has come under the net of compulsory scrutiny as per Action Plan for the Financial Year 2005-2006 as the assessee claimed refund exceeding Rs. 5 lakhs. Accordingly, notice u/s. 143(2) was issued on 25.7.2006 fixing the case for hearing on 22.8.2006 and was duly served upon the assessee. Subsequently, notice u/s. 142(1) along with questionnaire was issued on 07.05.2007 fixing the case for hearing on 22.5.2007 and was duly served upon the assessee on 14.5.2007. Shri Goutam Manna, Advocate, Authorised Representative of the assessee appeared with Books of A/c. on different dates to explain the return of income. The assessee is a transport contractor and worked under Indian Oil Corporation and Bharat Petroleum Corporation Ltd. As per audited Profit & Loss A/c. filed on 31.10.2005, the assessee has disclosed gross bill received at Rs.2,48,32,607/- and shown Net Profit at Rs.52,934/-. Books of A/c. and other relevant papers/documents filed/produced were examined with reference to audited Profit & Loss A/c. and Balance Sheet filed on 31.10.2005. Information collected from 3rd parties was verified from Books of A/c. i.e. Cash Book and ledger. The case was discussed with him and was heard."