1980 (3) TMI 49 - HC - Income Tax

Summary

The High Court of Madhya Pradesh allowed the petition under articles 226 and 227 of the Constitution. The petitioner, a contractor and assessee under the Income Tax Act, filed a return based on estimates. The ITO assessed net profit at 15%, higher than the petitioner's estimate of 10%. The Commissioner upheld the ITO's order without proper justification. The court found the assessment to be arbitrary and set aside both the ITO's and Commissioner's orders. The ITO was directed to reassess the petitioner's tax liability. The petitioner was granted costs, and the security deposit was to be refunded. (Case citation: 1980 (3) TMI 49 - Madhya Pradesh High Court)