https://www.taxtmi.com/caselaws?id=191748 Under the proviso to Section 13 of the Income-tax Act, 1922, the taxing authority may estimate profits by any reasonable method that seeks the truest approximation to actual income. The choice of method is open to judicial scrutiny only if it is wrong in principle or ignores relevant material. On the facts, the authorities compared two approaches: separating ascertainable sales from unascertainable sales, or applying an average rate to total turnover. As the result would be the same and the average-rate method better reflected the business position, no relevant evidence was ignored and the assessment method was neither arbitrary nor capricious. The Tribunal's assessment was therefore upheld and the reference answered in favour of the Revenue. en-us Wed, 08 Oct 1952 00:00:00 +0530 Mon, 17 Apr 2017 17:48:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191748 Under the proviso to Section 13 of the Income-tax Act, 1922, the taxing authority may estimate profits by any reasonable method that seeks the truest approximation to actual income. The choice of method is open to judicial scrutiny only if it is wrong in principle or ignores relevant material. On the facts, the authorities compared two approaches: separating ascertainable sales from unascertainable sales, or applying an average rate to total turnover. As the result would be the same and the average-rate method better reflected the business position, no relevant evidence was ignored and the assessment method was neither arbitrary nor capricious. The Tribunal's assessment was therefore upheld and the reference answered in favour of the Revenue. Case-Laws Income Tax Wed, 08 Oct 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191748