Unaccounted Sales Addition Based on 89% Estimated Yield Found Unsustainable without Evidence: Chhattisgarh HC dismisses Revenue’s Appeal

The Chhattisgarh High Court has dismissed the revenue's appeal, ruling that an income tax addition based on "estimated yield" without concrete evidence is unsustainable. The case involved an Assessing Officer who made a significant addition to the assessee's income by estimating unaccounted sales. The court found that the addition was based on a presumptive basis and lacked supporting proof. This decision reinforces the principle that tax assessments must be based on solid evidence and not on assumptions or arbitrary calculations. It provides a crucial precedent for taxpayers facing similar situations and highlights the judiciary's role in ensuring fair and just tax proceedings.