Dhakeswar1 Cotton Mills Ltd vs Commissioner Of Income Tax,West Bengal on 29 October, 1954
In the case of Dhakeswari Cotton
Mills Ltd. V. CIT (1964) 26 ITR 775 (SC) the Hon'ble Supreme Court
had held that once the books of accounts of the appellant are
rejected then the profit has to be estimated on the basis of the
material available. However, the assessing officer is not entitled to
make a pure guesswork estimation without reference to any
evidence or any material at all. There must be something more than
mere suspicion to support such addition.