1993 (3) TMI 329

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....ee has filed this revision petition 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 ....

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....r profit of 15 per cent over the purchases. 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 refe....

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....power is to satisfy as to the legality 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 su....

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.... of the subordinate officer were irregular 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....