https://www.taxtmi.com/caselaws?id=276927 The proviso to Section 13 could be used only where material showed that profits could not properly be deduced from the assessee's regularly employed accounting method. Mere absence of a stock register, when none had ever been maintained and the same method had been accepted in earlier and later years, did not justify rejection of the accounts. A low profit rate, without further grounds for disbelieving the books, was insufficient to support an arbitrary estimate. The Income-tax Officer therefore exceeded his function by substituting personal notions of business prudence for the assessee's accounts, and assessment under the proviso to Section 13 was not justified. en-us Sat, 29 Sep 1934 00:00:00 +0530 Tue, 20 Nov 2018 15:03:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276927 The proviso to Section 13 could be used only where material showed that profits could not properly be deduced from the assessee's regularly employed accounting method. Mere absence of a stock register, when none had ever been maintained and the same method had been accepted in earlier and later years, did not justify rejection of the accounts. A low profit rate, without further grounds for disbelieving the books, was insufficient to support an arbitrary estimate. The Income-tax Officer therefore exceeded his function by substituting personal notions of business prudence for the assessee's accounts, and assessment under the proviso to Section 13 was not justified. Case-Laws Income Tax Sat, 29 Sep 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276927