2001 (11) TMI 34

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....- Counsel contends that without examining the material data for each of the assessment years, the rate of return estimated by the Tribunal for an earlier year when the assessee itself had reported a profit margin of 15 per cent. has been adopted for four later years, wherein, the profit margin reported by the assessee varied from 9.7 per cent. to 12 per cent. Counsel submits that this approach of ....

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....ity for tax has to be determined, and even when the assessee's account books are not accepted, nevertheless the examination of the available data, or estimates for each year separately would have to be considered and, only thereafter, the liability determined. While it is no doubt true that an estimate by definition has to be that only, and no precise yard stick can be found by which to make su....

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....profit had been accepted by the Income tax Officer at only 9.5 per cent. Learned counsel for the assessee invited our attention to the decision of the Karnataka High Court in the case of P. Venkanna v. CIT [1969] 72 ITR 328 (Mys), wherein, it was held that other things being equal, profits estimated during an earlier period may guide the estimation of the profits of a subsequent year but only w....