TMI Blog2016 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... should be based on rational basis and it cannot be arbitrary. It could not be demonstrated by learned counsel for the assessee that the Tribunal had adopted any arbitrary or irrational approach in arriving at the conclusion. Moreover, the assessee had failed to furnish the requisite information compelling the Assessing Officer to take recourse to Section 144 of the Act in framing the Best Judgment assessment. A perusal of the chart that only an addition of ₹ 4,75,030/- has been made against the income of ₹ 1,10,940/- declared by the assessee. However, in view of the factual matrix noticed hereinabove and more particularly when learned counsel for the assessee-appellant has not been able to satisfy this court that the approac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 11 buses for business purposes. The assessee filed statutory return of income for the assessment year 2001-02 and declared total income of ₹ 1,10,940/- and agriculture income of ₹ 1,03,000/- alongwith the audit report. The case was selected for scrutiny as per Board's instructions. Statutory notices under section 143(2) and 142(1) of the Act were issued to the assessee. During the assessment proceedings, the assessee was issued notice under Section 142(1) of the Act on 23.2.2004 and 15.3.2004 to furnish certain details/information/clarification. The assessee did not produce and/or file the information called for in such notices regarding production of books of account, bank pass books, explanation to show cause notices et ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - giving effect to the impugned order for recovery of the tax. Hence the instant appeal by the appellant-assessee. 3. We have heard learned counsel for the parties. 4. Law in respect of best judgment assessment is well settled. The assessing authority while making the best judgment assessment should arrive at its conclusion without any bias and on rational basis. That authority should not be vindictive or capricious. If the estiamte made by the assessing authority is a bonafide estimate and is based on a rational basis, the fact that there is no good proof in support of that estimate is immaterial. Prima facie, the assessing authority is the best judge of the situation. It is his best judgment and not of anyone else. 5. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he buses might not be plied throughout the year. Even otherwise, the tax had to be calculated on net income. The Assessing Officer and the CIT(A) had estimated the occupancy of seats to the extent of 24 and 19 per bus respectively. The Tribunal deemed it appropriate to estimate the occupancy of seats at 22 per bus to put an end to the litigation. It may be noticed that for best judgment assessment, some guess work had to be adopted which should be based on rational basis and it cannot be arbitrary. It could not be demonstrated by learned counsel for the assessee that the Tribunal had adopted any arbitrary or irrational approach in arriving at the conclusion. Moreover, the assessee had failed to furnish the requisite information compelling t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 1,10,940/- declared by the assessee. 7. Learned cousnel for the appellant-assessee relied upon plethora of judgments in Commissioner of Sales Tax vs. H.M.Esufali H.M.Abdulali, (1973) 90 ITR 271, State of Kerala vs. C.Velukutty, (1966) 60 ITR 239 (SC), Anand Rice Oil Mills vs. Commissioner of Income Tax, (1977) 108 ITR 372 (Cal.), State of Orissa vs. Maharaja Shri B.P.Singh DEO, (1970) 76 ITR 690 (SC), Surajmal Champalal vs. Commissioner of Income Tax, (1967) 66 ITR 396 (Pat.), Mysore Fertilizer Co. vs. Commissieonr of Income Tax, (1966) 59 ITR 268 (Mad.), Commissioner of Income tax vs. Padamchand Ramgopal, (1970) 76 ITR 719 (SC), Seth Nathuram Munnalal vs. Commissioner of Income Tax, (1954) 25 ITR 216 (Nagpur), Alluminium Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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