Gross profit estimation upheld where assessment merely adopted the unchallenged intelligence estimate and no excessive rate was shown.

Gross profit estimation adopted from intelligence proceedings was upheld where the assessee did not challenge the estimated rate further and the Assessing Authority merely carried the same estimate into the assessment. The Court found no basis to interfere because the rate was not shown to be unreasonably higher than the gross profit already conceded by the assessee. The refusal of the Tribunal to disturb the assessment was therefore justified, and the challenge failed.

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Issues: (i) Whether the assessment based on the gross profit estimation adopted from the intelligence proceedings, and the Tribunal's refusal to interfere with that estimation, was liable to be set aside.

Issue (i): Whether the assessment based on the gross profit estimation adopted from the intelligence proceedings, and the Tribunal's refusal to interfere with that estimation, was liable to be set aside.

Analysis: The gross profit estimated in the penalty proceedings was not challenged further, and the Assessing Authority only adopted that estimate while completing the assessment. The estimated rate was also not shown to be unreasonably higher than the gross profit already conceded by the assessee. In these circumstances, the Court held that the assessee could not successfully assail the assessment merely by questioning the adoption of the same estimate, and the authorities below were justified in declining interference.

Conclusion: The issue was answered against the assessee and in favour of the revenue.

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