The assessee deals in precious and semi-precious stones. The AO noticed various defects in the books of account of the assessee. The AO therefore rejected the books of account and proceeded to make a best judgement assessment under section 144.<\/p>\n
\u00a0<\/p>\n
Whether there is necessarily some estimation involved in a best judgment assessment?<\/p>\n
\u00a0<\/p>\n
The authorities concerned should try to make an honest and fair estimate of the income even in a best judgment assessment, and should not act totally arbitrarily, but there is necessarily some amount of guess work involved in a best judgment assessment, and it is the assessee himself who is to blame as he did not submit proper accounts.<\/p>\n
\u00a0<\/p>\n
Even though there is always a certain degree of guess work in a best judgment assessment, the authority should try to\u00a0 make\u00a0 an\u00a0 honest and\u00a0 fair estimate\u00a0 of\u00a0 the\u00a0 income and should not act totally arbitrarily. (CA\u00a0 No. 5809 of\u00a0 2006 dt. 14-12-2006)<\/p>\n
Editorial : <\/em><\/strong>Earlier decision on the similar issue may be referred Joharmal Murlidar & Co v. Agri. ITO (1971) 79 ITR 6 (SC)<\/em><\/strong><\/p>\n \u00a0<\/em><\/strong><\/p>\n \u201cIf patience is worth anything, it must endure to\u00a0 the end of time. And a living faith will last in the midst of the blackest storm.\u201d<\/em><\/p>\n – Mahatma Gandhi<\/p>\n","protected":false},"excerpt":{"rendered":" S. 144: Best judgment assessment-Arbitrary-Honest and fair estimate.[ S.145(3) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13421","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3ut","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13421"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13421\/revisions"}],"predecessor-version":[{"id":13422,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13421\/revisions\/13422"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}