https://www.taxtmi.com/caselaws?id=178794 An income-tax addition cannot rest on suspicion, conjecture, or unproved estimates. The Assam HC noted that taxing authorities may draw reasonable inferences from material on record under section 23(3) of the Indian Income-tax Act, but a finding of fact is open to interference in reference where it lacks evidentiary support or is perverse. Although unexplained remittances could justify an inference of undisclosed receipts, there was no material to sustain the further assumptions of an undisclosed business turnover of Rs. 4 lakhs or profit at 5 per cent. The addition of Rs. 20,000 was therefore unsupported by proved material and the reference was answered for the assessee. en-us Tue, 24 Jul 1962 00:00:00 +0530 Fri, 12 Feb 2016 17:10:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178794 An income-tax addition cannot rest on suspicion, conjecture, or unproved estimates. The Assam HC noted that taxing authorities may draw reasonable inferences from material on record under section 23(3) of the Indian Income-tax Act, but a finding of fact is open to interference in reference where it lacks evidentiary support or is perverse. Although unexplained remittances could justify an inference of undisclosed receipts, there was no material to sustain the further assumptions of an undisclosed business turnover of Rs. 4 lakhs or profit at 5 per cent. The addition of Rs. 20,000 was therefore unsupported by proved material and the reference was answered for the assessee. Case-Laws Income Tax Tue, 24 Jul 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178794