https://www.taxtmi.com/caselaws?id=250401 A best judgment assessment cannot rest on an arbitrary gross-profit estimate; it must be supported by inquiry, comparable material, data, or other rational basis. On the facts described, the Assessing Officer's 25% gross-profit rate was unsupported, while the appellate authorities treated the 8% benchmark in section 44AD as a practical reference despite that provision being inapplicable because turnover exceeded the statutory limit. The Court found no substantial question of law and left the appellate view in favour of the assessee undisturbed. en-us Wed, 30 Jul 2014 00:00:00 +0530 Sat, 23 May 2026 13:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=250401 A best judgment assessment cannot rest on an arbitrary gross-profit estimate; it must be supported by inquiry, comparable material, data, or other rational basis. On the facts described, the Assessing Officer's 25% gross-profit rate was unsupported, while the appellate authorities treated the 8% benchmark in section 44AD as a practical reference despite that provision being inapplicable because turnover exceeded the statutory limit. The Court found no substantial question of law and left the appellate view in favour of the assessee undisturbed. Case-Laws Income Tax Wed, 30 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=250401