2023 (2) TMI 643

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at the estimation / best Judgment is palpably arbitrary or perverse. No reason to interfere with the findings of the Tribunal on estimation, which is essentially a question of fact/discretion, more so, in the absence of challenge to the estimate as being arbitrary or perverse. - T.C.A.No.15 of 2023 - - - Dated:- 10-1-2023 - Honourable Mr.Justice S.Vaidyanathan And Honourable Mr.Justice Mohammed Shaffiq For the Appellant : Mrs.V.Pushpa JUDGMENT This Tax 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 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it is relevant to extract the portion of the Tribunal's order: 7. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. During the course of assessment proceedings, the assessee has justified for adopting 3% of receipts from civil contract as net profit by stating that his volume of work was more and due to heavy competitions, he could not get more profit in these kind of contract. In support of his contention, before the Assessing Officer, the assessee gave the details of the previous years' assessment completed which are as follows: S. No. A.Y Total turnover of the assessee Profit p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 unless and until it is shown that the estimation / best Judgment is palpably arbitrary or perverse. 5. In the circumstances, we do not find any reason to interfere with the findings of the Tribunal on estimation, which is essentially a question of fact/discretion, more so, in the absence of challenge to the estimate as being arbitrary or perverse. 6. In v .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X