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2019 (5) TMI 302 - HC - Income TaxBest judgment assessment - Estimate of Profit Ratio - non furnishing of evidence - Substantial Question of Law - addition on provision of Section 69A - HELD THAT:- Estimate of Profit Ratio remains a fact finding exercise and unless the perversity in the findings of the Tribunal, from which the Substantial Question of Law can be said to be arising, is established by the Assessee on the basis of material on record or evidence adduced by him, in our considered opinion, no Substantial Question of Law arises in such matters. This Court does not have any material on record to establish either 1% or 3.5%, as being the reasonable rate of income. It is for the Assessing Authority to make any such 'Estimate of Income' in the hands of the Assessee. Assessee, claiming to be only acting as an Agent, in the absence of any disclosure about the identity of the purchasers, could only be treated as engaged in the said business of his own and, therefore, the Estimate of Income in the business of purchase and sale of gold was required to be assessed by the Assessing Authority. Estimate of Income, in such cases, even undertaking Best Judgment Assessment exercise while rejecting the Books of Accounts and Profits of the Assessee, is a fact finding exercise to be made, based on material to be placed on record by the Assessee. In the absence of any evidence placed by the Assessee in this regard, the Assessee cannot simply contend that Estimate of Income at 3.5% is unreasonable or perverse. The three authorities below have consistently upheld the said 'Ratio of Profit', to be assessable in the hands of the Assessee, and the Assessee has consistently failed before the authorities below to produce any cogent material to establish that 1% was reasonable Ratio of Profit in the said trade. Therefore, we do not find any Substantial Question of Law arising in this case and, accordingly, we do not find any merit in this Appeal filed by the Assessee.
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