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2014 (8) TMI 108 - AT - Income TaxEstimation of net profit at 4.25 of turnover – AO estimated the same at 20% - Held that:- An estimate, assuming existence of grounds for the exercise of that power by the assessing authority – has to be an honest and fair estimate, taking into account all the relevant material, which the AO is in fact obliged to gather, shorn of arbitrariness and capriciousness – relying upon Brij Bhushan Lal, Parduman Kumar vs. CIT [1978 (10) TMI 2 - SUPREME Court] - AO’s estimate suffers from the malice of arbitrariness, and there was no basis in law to support the same – thus, the order of the CIT(A) is upheld – Decided against Revenue.
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