TaxTMI 
TaxTMI 
1965 (9) TMI 54
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....that the assessee, a Hindu undivided family, carries on business in fancy goods, electrical goods, watches, radios, etc., in the name and style of "Vasavi General Traders" at Guntakal. It disclosed a net loss of ₹ 2,049 from the business for the assessment year 1953-54, for which the relevant accounting period is the year ending October 18, 1952. The books of account of the assessee were found by the Income-tax Officer to be defective and not maintained in accordance with the vouchers, some of which were subsequently found in the possession of the assessee. In the circumstances, he held that the account books were incomplete and unreliable, and thereafter proceeded to make the "best judgment" assessment by estimati....
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....een let off rather cheaply by it." We have extracted the above observations to show that the foundations for the conclusion are erroneous. Apart from there being no reasons given for agreeing with the conclusions of the Appellate Assistant Commissioner and the Income-tax Officer, to say that it was open to the department to have added the entire difference in the turnover, i.e., the difference between the turnover estimated and the turnover disclosed to the profits disclosed, is a result which does not appear to be based on any principle of accountancy or law. The plethora of decisions of the High Courts of this country, as affirmed by their Lordships of the Supreme Court, have consistently insisted upon the income-tax authorities sta....