https://www.taxtmi.com/caselaws?id=7170 An income-tax assessment based on private enquiries must rest on material disclosed to the assessee with a real opportunity to rebut it, and an estimate must have a rational nexus with the facts relied on. Here, only the substance of the private enquiry was communicated, while the detailed basis for the alleged suppressed turnover, the departmental note, and the foundation for applying a flat 50% profit rate were not properly disclosed. The Court also found no reliable link between the unaccounted dyes and chemicals and the turnover estimate, or between different business lines and the same profit rate. The assessment therefore could not stand. en-us Wed, 28 Jun 1967 00:00:00 +0530 Thu, 12 Feb 2009 11:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7170 An income-tax assessment based on private enquiries must rest on material disclosed to the assessee with a real opportunity to rebut it, and an estimate must have a rational nexus with the facts relied on. Here, only the substance of the private enquiry was communicated, while the detailed basis for the alleged suppressed turnover, the departmental note, and the foundation for applying a flat 50% profit rate were not properly disclosed. The Court also found no reliable link between the unaccounted dyes and chemicals and the turnover estimate, or between different business lines and the same profit rate. The assessment therefore could not stand. Case-Laws Income Tax Wed, 28 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7170