Estimation of income without any basis by Assessing Officer is not valid

BRIEF FACTS OF THE CASE AND QUESTION OF LAW Brief Facts: This is an appeal by the Department against the order dated 29/10/2009 of the Ld. CIT (A) – I, New Delhi. The assessee for the year under consideration did not file the return of income; therefore, the AO issued notice u/s 142(1) of the IT Act, 1961(hereinafter referred to as the Act). Since the return was not filed by the assessee, the AO framed the assessment u/s 144 of the Act and assessed the income on estimate basis at Rs. 25,00,000/- by observing that the income for the preceding assessment year 2002-03 was assessed at Rs.18...