https://www.taxtmi.com/caselaws?id=196436 Income-tax authorities may reject books and estimate profits under Section 13 where records and cost proof are inadequate; the court found such rejection and reliance on a percentage estimate fell within statutory discretion and required showing of illegality or arbitrariness to be disturbed, therefore no question of law arose. Regarding the chosen 30% flat rate, the court treated the quantum as a departmental discretionary determination informed by practice and prior application, noting that the record showed examination of particulars and prior use without objection, so the rate was not shown to be illegal or arbitrary. en-us Mon, 14 Feb 1938 00:00:00 +0530 Thu, 30 Nov 2017 16:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=196436 Income-tax authorities may reject books and estimate profits under Section 13 where records and cost proof are inadequate; the court found such rejection and reliance on a percentage estimate fell within statutory discretion and required showing of illegality or arbitrariness to be disturbed, therefore no question of law arose. Regarding the chosen 30% flat rate, the court treated the quantum as a departmental discretionary determination informed by practice and prior application, noting that the record showed examination of particulars and prior use without objection, so the rate was not shown to be illegal or arbitrary. Case-Laws Income Tax Mon, 14 Feb 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=196436