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2023 (2) TMI 643 - HC - Income TaxEstimation of income - best judgment assessment - Tribunal upholding the order of the CIT (Appeals) estimating the income of the assessee at 4% of the turn-over on the basis of the earlier year assessment orders - assessee has not maintained the Books of Accounts and has not audited his accounts by a Chartered Accountant - HELD THAT:- The estimation is by way of 'best judgment assessment' and it has been consistently held that there is bound to be an element of guess work and there cannot be any rigid formula for estimation based on best Judgment, no interference is warranted unless and until it is shown that the estimation / best Judgment is palpably arbitrary or perverse. No reason to interfere with the findings of the Tribunal on estimation, which is essentially a question of fact/discretion, more so, in the absence of challenge to the estimate as being arbitrary or perverse.
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