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2017 (4) TMI 617 - ALLAHABAD HIGH COURTEstimation of income - N.P. determination - ITAT legally correct in upholding the findings of the CIT (A)- Held that:- It is an admitted case between the parties that the books of account have not been produced at the stage of assessment. Consequently, a best judgement assessment was made. While the assessing officer adopted a gross profit rate to estimate the income of the assessee. The CIT (Appeals) had adopted a net profit rate of 10% considering the comparable cases of other persons engaged in similar business in respect of income arising from contracts. In respect of liquor business the CIT (Appeals) adopted a net profit rate of 2% on the basis of comparable case of one Ram Kumar, Shiv Kumar Shivhare that had travelled up to the tribunal and been approved at that rate. The estimation of income involves certain guess work and the fact finding authorities are in the best position to make the estimation. The net profit rate method is also an acceptable method to estimate the income of an assessee.In the instant case, the net profit rate has been approved by the Tribunal by relying on the comparable cases of other assessees engaged in similar business. Thus, the method adopted to make the estimate of income of the assessee cannot be said to be based on no evidence or basis. No error in the same or need to interfere with such an order of the Tribunal. - Decided in favour of the assessee
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