ITO must estimate Income on fair basis and not arbitrarily if Assessee not maintained sufficient books of account

Allahabad High Court Badrinath Agarwal. Vs Commissioner Of Income-Tax, U. P. Date- 19 January, 1967 Equivalent citations: 1967 65 ITR 242 All JUDGMENT MANCHANDA J. – This is a case stated under section 66(2) of the Income-tax Act 1922 (hereinafter referred to as the Act). The two questions referred are : “1. Whether, in the circumstances of the case, the application of the flat rate of 5 per cent. was justified when in the case of another dealer of the same place, namely, M/s. Abid Hussain Sajjad Hussain of Mubarakpur, who is also an assessee, a rate of 2% disclosed was accepted? ...