https://www.taxtmi.com/caselaws?id=185077 Where an assessee has filed a return and produced accounts in compliance with notice, the Income-tax Officer must follow the statutory procedure before rejecting those accounts and recomputing income. The proviso to section 13 applied only where no regular method of accounting was employed or where the method prevented proper deduction of income; here, the officer merely doubted the genuineness of the accounts without reasons. Section 23(2) required notice to attend or produce evidence when the return appeared incorrect or incomplete, but no such notice was served and no defects were pointed out. An assessment made in that manner was illegal and could not be sustained as an arbitrary estimate. en-us Fri, 29 Jan 1926 00:00:00 +0530 Fri, 29 Jul 2016 18:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185077 Where an assessee has filed a return and produced accounts in compliance with notice, the Income-tax Officer must follow the statutory procedure before rejecting those accounts and recomputing income. The proviso to section 13 applied only where no regular method of accounting was employed or where the method prevented proper deduction of income; here, the officer merely doubted the genuineness of the accounts without reasons. Section 23(2) required notice to attend or produce evidence when the return appeared incorrect or incomplete, but no such notice was served and no defects were pointed out. An assessment made in that manner was illegal and could not be sustained as an arbitrary estimate. Case-Laws Income Tax Fri, 29 Jan 1926 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185077