9911796707
TMI Blog1993 (3) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1983 to September 30, 1984. The assessee is a dealer in hardware, paints, iron and steel and other items. The assessee deals both on retail and wholesale basis. For the period in question the assessee filed a return. However, the assessing authority proceeded to make an order to the best of his judgment after issuing a proposition notice. The assessing authority proposed to reclassify the turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the particular line of business engaged by the assessee, the gross profit did not exceed 5 per cent. It was however pointed out that the trade account of the assessee revealed a gross profit of about 10 per cent and this has been accepted by the Income-tax department. It is unnecessary to refer other details in the reply. The Deputy Commissioner did not accept the explanation of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the regularity of such proceeding in so far as it is prejudicial to the interest of the Revenue. It is submitted that there is no illegality or impropriety in the order made by the assessing authority who had practically accepted the gross profit at 10 per cent and this estimate cannot be substituted by another figure of 15 per cent in the absence of any specific material. The learned High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... views are possible and the assessing authority thought to accept a particular view, it cannot be said that the existence of such a view is an illegality or impropriety. In the case of a best judgment assessment made by the assessing authority, unless it is shown as arbitrary or capricious, it cannot be termed as illegal or improper. If the assessing authority fails to consider any relevant prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 per cent over the purchase. The basis of such assertion also is not forthcoming in the notice. In such a situation, it cannot be said that the Deputy Commissioner acted within the scope of section 21 of the Act. For the reasons stated above, the order of the Deputy Commissioner as well as that of the Karnataka Appellate Tribunal are set aside. Revision petition is allowed accordingly. Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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