https://www.taxtmi.com/caselaws?id=173803 In a default assessment under the Income-tax Act, the authorities must make a fair estimate on relevant material, and a receipts basis may properly be adopted where contract income accrues on completion and entitlement to payment. The direction to assess contract receipts on that basis was upheld. A lower profit rate could not be justified merely by referring to rates in other cases; the rate had to rest on evidence relevant to the assessee's own facts, so the Tribunal's reduction from 40 per cent. to 30 per cent. was disapproved. Rule 9 of Schedule I of the Excess Profits Tax Act applied only to contracts extending beyond the accounting period and was inapplicable to contracts completed within it. en-us Thu, 09 Dec 1948 00:00:00 +0530 Tue, 22 Sep 2015 17:32:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=173803 In a default assessment under the Income-tax Act, the authorities must make a fair estimate on relevant material, and a receipts basis may properly be adopted where contract income accrues on completion and entitlement to payment. The direction to assess contract receipts on that basis was upheld. A lower profit rate could not be justified merely by referring to rates in other cases; the rate had to rest on evidence relevant to the assessee's own facts, so the Tribunal's reduction from 40 per cent. to 30 per cent. was disapproved. Rule 9 of Schedule I of the Excess Profits Tax Act applied only to contracts extending beyond the accounting period and was inapplicable to contracts completed within it. Case-Laws Income Tax Thu, 09 Dec 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=173803