1991 (1) TMI 436

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....). Whether the Tribunal was justified in law and on facts in holding that inspections granted on 13th March, 1979, 22nd March, 1979 and 24th March, 1979 were sufficient opportunity to the assessee for examining 247 documents ?" 2. On 13th Aug., 1976 a raid was conducted on the residential premises of the assessee, who is an individual, as a result of which 244 documents were seized. As some of these documents related to transactions relevant to the asst. yr. 1976-77 in question, the ITO after giving an opportunity of being heard to the assessee passed the assessment order, whereby these transactions were totalled at Rs. 4,24,396 and profits were estimated at Rs. 42,440 at the rate of Rs. 10%. To this profit of Rs. 42,440 a sum of Rs. 50,....

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....ke the assessment on a pure guess without reference to any evidence or material. In this connection it is appropriate to refer the following passage from the aforesaid decision. "As regards the second contention, we are in entire agreement with the learned Solicitor-General when he says that the ITO is not fettered by technical rules of evidence and pleadings, and that he is entitled to act on material which may not be accepted as evidence in a court of law, but there that agreement ends; because it is equally clear that in making the assessment under sub-s. (3) of s. 23 of the Act, the ITO is not entitled to make a pure guess and make an assessment without reference to any evidence or any material at all. There must be something m....