https://www.taxtmi.com/caselaws?id=6811 Best judgment assessment under the proviso to Section 13 of the Income-tax Act, 1922 permitted estimation of income where the assessee kept no regular books and produced only limited records. The authorities could adopt a flat gross-profit rate if they reasonably considered trade conditions, the business margin and the unreliability of accounts. On the facts noted, the higher margin from largely outstation sales supported the estimate, and the flat 5% rate was not shown to be arbitrary or capricious. The court treated the estimate as a factual, judgment-based finding rather than an error of law, and upheld it. en-us Thu, 19 Jan 1967 00:00:00 +0530 Mon, 02 Feb 2009 11:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6811 Best judgment assessment under the proviso to Section 13 of the Income-tax Act, 1922 permitted estimation of income where the assessee kept no regular books and produced only limited records. The authorities could adopt a flat gross-profit rate if they reasonably considered trade conditions, the business margin and the unreliability of accounts. On the facts noted, the higher margin from largely outstation sales supported the estimate, and the flat 5% rate was not shown to be arbitrary or capricious. The court treated the estimate as a factual, judgment-based finding rather than an error of law, and upheld it. Case-Laws Income Tax Thu, 19 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6811