1983 (7) TMI 2 - SC - Income Tax

Best judgment assessment - If for a frivolous reason the chartered accountant declines to undertake the audit of the appellant s accounts obviously the appellant could not be held responsible - section 144(b) is not applicable - best judgment assessment made by ITO was set aside

Summary

The Supreme Court set aside the High Court's judgment and "best judgment" assessment for the appellant-company for the assessment year 1974-75. A fresh audit of the appellant-company's accounts should be undertaken before the final assessment is made under section 142(2A) of the Income Tax Act, 1961. The Commissioner of Income-tax is directed to nominate an auditor within one month. The appellant agreed not to raise any limitation bar for the fresh assessment. No costs were awarded.