Closing stock

It appears there is no profit in the business, Sales =28 Lacs= Cost of Purchase (13 Lacs +23 Lacs- 8 Lacs).

1. U will have to follow provisons of  44AD and declare profit @ 8 per cent without keeping books.

2. if u do not wish to declare 8 % profits, maintain books and get them audited, in that case u can claim

loss on goods destroyed provided that there should be proper evidence to justify the loss.