1993 (3) TMI 329

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....ion in respect of an order of assessment made for the period, October 1, 1983 to September 30, 1984. The assessee is a dealer in hardware, paints, iron and steel and other items. The assessee deals both on retail and wholesale basis. For the period in question the assessee filed a return. However, the assessing authority proceeded to make an order to the best of his judgment after issuing a propo....

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....urchases. The assessee objected to the proposal and pointed out that in the particular line of business engaged by the assessee, the gross profit did not exceed 5 per cent. It was however pointed out that the trade account of the assessee revealed a gross profit of about 10 per cent and this has been accepted by the Income-tax department. It is unnecessary to refer other details in the reply. The ....

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.... or propriety of the order made by the subordinate authority or as to the regularity of such proceeding in so far as it is prejudicial to the interest of the Revenue. It is submitted that there is no illegality or impropriety in the order made by the assessing authority who had practically accepted the gross profit at 10 per cent and this estimate cannot be substituted by another figure of 15 per ....

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....ular which was prejudicial to the interests of the Revenue. When two views are possible and the assessing authority thought to accept a particular view, it cannot be said that the existence of such a view is an illegality or impropriety. In the case of a best judgment assessment made by the assessing authority, unless it is shown as arbitrary or capricious, it cannot be termed as illegal or improp....