https://www.taxtmi.com/caselaws?id=182835 Where the assessee's accounts did not inspire confidence, gross profits could be assessed under Section 23(3) of the Income-tax Act, 1922 on material other than the assessee's own books, including profits shown by neighbouring shop-keepers. The use of outside material was permissible, but only if the assessee was given a fair opportunity to meet it. On the stated facts, the assessee had been asked to explain the low profits, advanced an explanation, and that explanation was considered and rejected. The assessment was therefore treated as lawful, and the objection based on denial of opportunity failed. en-us Tue, 08 Aug 1950 00:00:00 +0530 Fri, 20 May 2016 15:58:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182835 Where the assessee's accounts did not inspire confidence, gross profits could be assessed under Section 23(3) of the Income-tax Act, 1922 on material other than the assessee's own books, including profits shown by neighbouring shop-keepers. The use of outside material was permissible, but only if the assessee was given a fair opportunity to meet it. On the stated facts, the assessee had been asked to explain the low profits, advanced an explanation, and that explanation was considered and rejected. The assessment was therefore treated as lawful, and the objection based on denial of opportunity failed. Case-Laws Income Tax Tue, 08 Aug 1950 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182835