Section 29(iii) of the Orissa Agricultural Income-tax Act — the law in short
What the courts have decided on section 29(iii) of the Orissa Agricultural Income-tax Act, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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State of Orissa v Maharaja Shri B.P. Singh Deo
Supreme CourtHelps taxpayer
The officer rejected my books and then simply picked a figure, and the appellate authority enhanced it without saying why. Can an estimate be made like that?
No. The Supreme Court dismissed the State's appeals and upheld the Orissa High Court, which had set aside an enhancement made in a best judgment assessment. The Assistant Collector had found the assessee's material unreliable and had then enhanced the income without giving any reason and without disclosing the basis of the enhancement. The Court held that unreliability of the assessee's material does not empower the authorities to make an arbitrary order. The power to assess to the best of judgment is not an arbitrary power; the assessment must be based on some relevant material. The Tribunal had erred in affirming it without reasons.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
