https://www.taxtmi.com/caselaws?id=14211 In a block assessment under Chapter XIV-B, additions based on an estimated gross profit rate and alleged stock suppression were held unsustainable where the estimate was derived from a part-period trading result rather than the full block period. The assessment method was treated as arbitrary because no material showed that the 15 per cent gross profit rate applied throughout the relevant period, and the reasoning on the second addition was internally contradictory. While estimation may be used where documentary evidence is lacking, it must rest on a consistent and rational basis. The Tribunal's deletion of the additions was upheld and the Revenue's challenge failed. en-us Mon, 21 Feb 2000 00:00:00 +0530 Tue, 14 Jul 2009 15:07:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14211 In a block assessment under Chapter XIV-B, additions based on an estimated gross profit rate and alleged stock suppression were held unsustainable where the estimate was derived from a part-period trading result rather than the full block period. The assessment method was treated as arbitrary because no material showed that the 15 per cent gross profit rate applied throughout the relevant period, and the reasoning on the second addition was internally contradictory. While estimation may be used where documentary evidence is lacking, it must rest on a consistent and rational basis. The Tribunal's deletion of the additions was upheld and the Revenue's challenge failed. Case-Laws Income Tax Mon, 21 Feb 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14211