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TMI Blog2008 (7) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... nal was justified in allowing the appeal of the Revenue solely on the ground that the figures of gross profit as returned in the instant year and the preceding years was not tendered before the income-tax authorities, and without going into other merits of the case?" 2. The brief facts giving rise to the present appeal are that the appellant (hereinafter referred to as the assessee) runs the business of a restaurant under the name and style of New Plaza Restaurant, Middle Bazaar, Shimla. For the assessment year 1993-94, the assessee filed a return showing an income of Rs. 24,350. This return was filed on the basis of the books of account. The Assessing Officer on the basis of the material led before him rejected the books of account and on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made by the Tribunal is an estimation based on evidence and, therefore, no question of law much less a substantial question of law arises in the appeal. She has relied upon a judgment of the Assam High Court in Safiullah v CIT. AIR 1957 Assam 18 wherein it was held that the question whether the estimate is correct or not is a pure question of fact. 9. Reliance is also placed by both sides on the observations of the apex court in Brij Bhushan Lal Parduman Kumar v. CIT [1978] 115 ITR 524(SC);AIR 1979 SC 209, wherein the following observations made by the apex court are extremely relevant (page 530): "7. It will appear clear from what has been said above that the authority making a best judgment assessment must make an honest and fair e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was 2.2. Ms. Kuthiala has contended that the Tribunal had applied the multiple of 2.2 by accepting the gross profit declared by the assessee and accepted by the Revenue for the previous four assessment years. 13. At the outset we may observe that even while making an estimation the Assessing Officer must follow some principles. The estimation cannot be arbitrary or capricious. The Assessing Officer is bound to follow the same yardstick for similar sorts of businesses. Admittedly, Alfa Restaurant and the assessee's restaurant are engaged in the same business. There was no difference like the one in Baljees' case wherein a large proportions of sales were from the counter. The Commissioner of Income-tax had followed a better system and had en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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