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Issues involved:
The petitioner seeks a certiorarified mandamus to quash the order passed by the Settlement Commission and to rehear the case after considering the evidence and materials. The main issue is the estimation of net profit income based on seized documents and lack of audited accounts. Judgment Details: The petitioner filed an income-tax settlement application for the assessment years 1988-89 to 1994-95. The Settlement Commission determined the estimated income by adopting an average of profit rates from seized records. The petitioner challenged this determination, claiming it was incorrect and without basis as it did not consider material evidence from comparable cases. Upon review, the court noted a search in the petitioner's business premises in 1992 related to lottery ticket sales. The Commission highlighted the challenge in estimating net profit due to incomplete seized documents and lack of audited accounts. The petitioner's failure to maintain regular accounts and alleged non-cooperation by partners further complicated the case. The Commission decided to estimate net profit at 0.75% of turnover, considering it as the only agreed figure between the Department and the petitioner. The court emphasized that its jurisdiction under Article 226 of the Constitution is not appellate but limited to cases with mistakes apparent on the record. Referring to previous Supreme Court decisions, it clarified that the High Court cannot substitute its view for that of the Settlement Commission based on materials on record. The court cited precedents to support the limited scope of review under Article 226. Given the Settlement Commission's decision based on the available facts and the limited review jurisdiction, the court found no merit in the petitioner's plea. Consequently, the writ petition was dismissed with no order as to costs.
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