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TMI Blog2016 (1) TMI 1495X X X X Extracts X X X X X X X X Extracts X X X X ..... the form of paper book which is placed on record. AO failed to point out the specific disallowances from the books of accounts of the assessee. Revenue s appeal is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... adverse material or evidence on record I find merit and substance in the argument that, even while making a best judgment assessment u/s. 144, the AO does not possess absolute arbitrary authority to assess any figure he likes. Even if the circumstances of the case called for resorting to estimating the income of the appellant, such estimation cannot be a wild one, but, should be made honestly and not arbitrarily; moreover, it should have a reasonable nexus with the material available on record. While estimating the income, the AO must not act vindictively or capriciously or with a view to punish the appellant for non-compliance. For, the AO has to be guided by the rules of justice, equity and good concise. But, in the present case, the AO h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o cited case laws. Before us the ld. AR submitted that all the expenses claimed by the assessee are duly supported with the necessary documents and incurred for the purpose of business only. Regarding the expenses of material purchase the assessee before us submitted the complete details of the parties along with addresses, description of goods and their value from whom the materials were purchased. Such detail is placed on page 35 of the paper book. The assessee also submitted the comparative chart of the material expenses incurred in the earlier year which is placed on page 36 of the paper book. The assessee claimed that in the relevant year under consideration the cost for the material expenses have come down in relation to the gross rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... point out the specific disallowances from the books of accounts of the assessee. We also find from the order of Hon'ble Supreme court in the case BrijBhushan Lal Parduman Kumar v. CIT (1978) 115 ITR 524 (SC) and head note reproduced below:- "Assessment - Best judgment assessment - Income estimate - Basis thereof - Necessity of reasonable nexus - Authority making a best judgment assessment must make an fair estimate of the income of the assessee and though arbitrariness cannot be avoided in such estimate the same must not be capricious but should have a reasonable nexus to the available material and the circumstances of the case." 9.1. We also find that the ld. DR has not brought anything on record to controvert the finding of the ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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