TMI Blog1979 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... mp Udaipur, in respect of all the four assessment, years. It appears that the ITO, A-Ward, Udaipur, who is the assessing authority served notice on the assessee, in the first instance, under s. 139(2) of the I.T. Act, 1961 (hereinafter to be referred to as " the Act "), but the assessee did not comply with the notice. Thereafter notice was issued under s. 142(1) of the Act calling upon the assessee to produce the books of account maintained by it. Thereupon the authorised representative of the assessee put in appearance on behalf of the assessee before the taxing authority and prayed for an adjournment. Adjournment was allowed but again there was default in appearance on behalf of the assessee. The ITO found that the assessee was a habitual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Additional Commissioner held that the earlier assessments were sufficient basis for making the best judgment assessment in the present case. Learned counsel for the petitioner has urged that the assessee had suffered losses during the relevant years and, therefore, they should not have been assessed on an income of Rs. 19,600 for each year. It is submitted that the estimate of income made by the ITO is not fair and honest. It may be pointed out that right from the assessment year 1954-55, down to the assessment year 1,964-65, the assessee had been assessed under s. 23(3) of the 1922 Act and s. 144 of the Act. It is further clear from the grounds of revision filed by the assessee before the Addl. Commr. (Ex. 5) that for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o make an assessment to the best of his judgment against a person who is in default as regards supplying information. He must not act dishonestly or vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be fair estimate of the proper figure of assessment, and for this purpose he must, their Lordships think, be able to take into consideration local knowledge and repute in regard to the assessee's circumstances and his own knowledge of previous returns by and assessments of the assessee, and all other matters which he thinks will assist him in arriving at a fair and proper estimate; and though there must necessarily be guesswork in the matter, it must be honest guesswork. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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