2023 (2) TMI 643

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.... Case Appeal is filed raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in upholding the order of the Commissioner of Income Tax (Appeals) estimating the income of the assessee at 4% of the turn-over on the basis of the earlier year assessment orders, when the assessee has not maintained the B....

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.... the previous four years by the Assessing Officer, who proceeded to make and determine the income on the basis of the estimation by adding 8% to the income reported as per Section 44-AB of the Income Tax Act, resulting in enhancement of the income liable to tax. 3. Now, we find that the order in appeal, namely the order of the appellate authority, dated 12.10.2022 is primarily one relating to e....

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.... S. No. A.Y Total turnover of the assessee Profit percentage (%) declared by the assessee Income declared by the assesssee Profit determined u/s 143(3) 1 2015-16 41,81,21,750 3% 1,25,43,653 3% 2 2014-15 22,63,98,010 3% 67,91,940 3.50% 3 2013-14 14,07,09,573 4% 56,28,383   4 2012-13 13,71,29,706 4% 54,85,188 ....

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....et profit to 4%. Thus, we find no infirmity in the order passed by the ld. CIT(A). Thus, the ground raised by the Revenue is dismissed." 4. The estimation is by way of 'best judgment assessment' and it has been consistently held that there is bound to be an element of guess work and there cannot be any rigid formula for estimation based on best Judgment, no interference is warranted unl....