https://www.taxtmi.com/caselaws?id=177915 Where an assessee's accounts are found unreliable, the taxing authority may reject them and compute income on a reasonable and honest estimate under the proviso to section 13 of the Indian Income-tax Act, 1922. Past assessment history and earlier returns may be relied on as relevant material for that estimate, and there is no rule prohibiting use of the same profit percentage as in a preceding year if the figure is not arbitrary. Applying that principle, the estimate of profit from the country spirit business was upheld and the assessee's challenge failed. en-us Wed, 24 Apr 1957 00:00:00 +0530 Thu, 21 Jan 2016 18:48:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177915 Where an assessee's accounts are found unreliable, the taxing authority may reject them and compute income on a reasonable and honest estimate under the proviso to section 13 of the Indian Income-tax Act, 1922. Past assessment history and earlier returns may be relied on as relevant material for that estimate, and there is no rule prohibiting use of the same profit percentage as in a preceding year if the figure is not arbitrary. Applying that principle, the estimate of profit from the country spirit business was upheld and the assessee's challenge failed. Case-Laws Income Tax Wed, 24 Apr 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177915