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2012 (7) TMI 720 - ITAT, DELHIWhether ld. CIT(A) has erred in law and on facts in holding that after applying net profit rate from business turn over, further addition on account of insurance claim received and addition on account of other income credited to P&L account cannot be made while other income was clearly taxable as such and did not comprise of or could be related to business turnover - application of net profit rate of 0.70% after exclusion of insurance receipts and interest income, on estimated sales – Held that:- CIT(A) without even having a look at the relevant books of accounts or bills/vouchers or even past history of the case, accepted disclosed sales and rejected the treatment given to insurance receipts and interest income by the AO, ignoring the fact that the best judgment assessment involves an element of guess work - power to make assessment on the basis of best judgment is not an arbitrary power. It is an assessment on the basis of best judgment of the officer - whenever best judgment assessment is made, the court would not call for proof from the officer if there is some nexus between the amount arrived at after some guess work and the facts of the case – matter remanded to CIT(A)
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