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Issues involved:
1. Refusal of the Commissioner of Income-tax to state a case under Section 66(3) 2. Assessment based on unreliable books of the assessee 3. Interpretation of Section 13 and Section 23 in income tax assessment Detailed Analysis: 1. The application before the Appellate Tribunal was under Section 66(3) concerning the refusal of the Commissioner of Income-tax to state a case. The Commissioner had refused to state a case based on three matters raised before him: addition to the income of the shop, bad debts, and certain expenses. However, the second matter was withdrawn by the assessee, and the third matter was not raised before the Assistant Commissioner, hence no appeal lay on that point to the Commissioner. 2. The primary issue left was the addition to the income of the shop, which was based on the unreliability of the books produced by the assessee. The Income-tax Officer, after scrutinizing the books and finding them unreliable, proceeded to assess the income under Section 23(3), which led to the inclusion of a computation under the proviso to Section 13. 3. The Tribunal clarified the difference between Section 13 and Section 23, emphasizing that Section 23 deals with assessment while Section 13 deals with computation. The judgment highlighted the importance of the Income-tax Officer applying his mind to the proviso in Section 13 when rejecting the evidence of unreliable books to arrive at a fair income estimate for assessment. 4. The Tribunal examined previous cases to illustrate the necessity of following a proper method of computation when books are unreliable. It emphasized that the Income-tax Officer must make a rational effort to arrive at a fair figure based on the available materials, even if the books provided by the assessee are misleading or unreliable. 5. The Tribunal dismissed the questions raised in the application, stating that there was no question of law involved in the assessment process followed by the Income-tax Officer. It concluded that the assessment was conducted in compliance with the provisions of the Income Tax Act, and there was no legal issue arising from the circumstances of the assessment. 6. Ultimately, the Tribunal dismissed the application and ordered the payment of costs, stating that there was no question of law involved in the assessment process, and the application was therefore rejected. This detailed analysis of the judgment provides a comprehensive understanding of the issues involved and the Tribunal's reasoning in addressing each matter related to the income tax assessment.
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