https://www.taxtmi.com/caselaws?id=35883 The court held that the Income Tax Officer's (ITO) best judgment assessment of the petitioner's net profit at 15% without a disclosed basis was arbitrary. Both the ITO's and Commissioner's orders were quashed due to the lack of justification for the flat rate estimation. The court emphasized the need for a reasonable basis in best judgment assessments, leading to a fresh assessment by the ITO with proper grounds. The petitioner's petition was allowed, with each party bearing their own costs and the petitioner entitled to a refund of the security deposit. en-us Wed, 12 Mar 1980 00:00:00 +0530 Wed, 17 Mar 2010 15:44:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35883 The court held that the Income Tax Officer's (ITO) best judgment assessment of the petitioner's net profit at 15% without a disclosed basis was arbitrary. Both the ITO's and Commissioner's orders were quashed due to the lack of justification for the flat rate estimation. The court emphasized the need for a reasonable basis in best judgment assessments, leading to a fresh assessment by the ITO with proper grounds. The petitioner's petition was allowed, with each party bearing their own costs and the petitioner entitled to a refund of the security deposit. Case-Laws Income Tax Wed, 12 Mar 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35883