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2018 (4) TMI 1268 - AT - Income TaxMaintainability of the claim for exemption u/s. 11 - best judgment assessment - Held that:- In the present case we abstain from doing so considering that the assessee is a charitable organization. AR would before us assure us that the assessee shall cooperate in the set aside proceedings. Surely, if the assessee could furnish explanation/material(s) before the first appellate authority, what prevents it from doing so before the assessing authority? Where the assessee so does, adducing the relevant materials, AO shall frame a regular assessment on merits in accordance with law. Where not, i.e., despite the assurance before us, the AO may frame a best judgment assessment on some valid basis, both on facts and as well in law, drawing legitimate inferences, i.e., in accordance with law. The law, it may be clarified permits him to draw adverse inferences, as admissible under the circumstances, where the relevant material is not produced before him (refer, inter alia, Metal Box Powder Co. Ltd. v. CIT [2002 (7) TMI 63 - MADRAS High Court] - Appeal of the revenue is allowed for statistical purposes
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