Income estimate by applying a flat rate can be fair if AO exercises his judgment reasonably and not arbitrarily

Orissa High Court Commissioner Of Income-Tax And vs S. Sen And Others. Date- 9 December, 1948 Equivalent citations: 1949 17 ITR 355 Orissa JUDGMENT RAY, C.J – The proceeding arises out of two application consolidated because of the facts being identical, by the Commissioner of Income-tax/Excess profits Tax, Bihar and Orissa, under Section 66(1) of the Income-tax Act read with Section 21 of the Excess profits tax Act for the stating a case and a case stated for the opinion of this Court on the following three question of law :- “(1) Whether in the circumstances...