Dhakeshwari Cotton Mills Ltd. v. CIT

26 ITR 775Supreme Court of India1954#40 most cited

What is Dhakeshwari Cotton Mills Ltd. v. CIT authority for?

Corroborative evidence is essential to support evidence found on third-party premises, and an assessment cannot be based on suspicion, surmises, or conjecture.

1,061

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2007 to 2026.

Also referred to as

Dhakeshwari Cotton Mills Ltd. v. CIT · corroborative evidence · third-party premise · suspicion · surmises · conjecture · assessment · Income-tax Officer · evidence

Sections most often in play

Section 143(3)Section 132Section 68Section 153CSection 153ASection 132(4)Section 115BBESection 142(1)

Issues it is cited on

section 23(3)circular tradingsection 132(4a)dumb documentssection 292crejection of books of accountloose paperssection 145(3)documents seizedsection 34section 145on-money

Judgments citing Dhakeshwari Cotton Mills Ltd. v. CIT

Smt. Adesh Agrawal, New Delhi vs. ITO, Haldwani

In the result, the appeal of the assessee is partly allowed

ITA 3281/DEL/2017[2009-10]Status: DisposedITAT Dehradun15 Sept 2023AY 2009-10
Section 142(1)Section 143(1)Section 143(3)Section 145Section 147Section 148

…vidence Act do not apply to income-tax proceedings, assessments cannot be made on the basis of imagination and guess work. Reference in this respect may be made to the judgment of Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. v. CIT [1954] 26 ITR 775 and a host of Supreme Court and High Court's judgments thereafter on the subject. We, therefore, direct deletion of the sum of Rs. 17,00,892 assessed by the Assessing Officer by way of half share of the assessee in the alleged earnest money." 13. It is an admitted fact that the present assessee had not signed the agreement in question and since th…

Kailash Chand Yadav, 100, Kalu Baba Ki Dhani, Sheoshinghpur, Akoda, Phulera-303338 vs. Income Tax Officer, Ward - 1(2), Jaipur

In the result, the appeal of the assessee is partly allowed

ITA 82/JPR/2023[2010-11]Status: DisposedITAT Jaipur11 Sept 2023AY 2010-11

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.L. Poddar(Adv.)&For Respondent: Smt. Monisha Choudhary(Addl.CIT)
Section 142(1)Section 148Section 69A

…l justice is void and a nullity. (iii) A.K. Kraipak vs. UOI AIR 1970 SC 150 The aim of natural justice is to secure justice and to prevent miscarriage of justice. (iv) C. Vasanntlal& Co. vs. CIT (1962) 45 ITR 206 (v) DhakeshwariCottom Mills Ltd vs. CIT (1954) 26 ITR 775 (SC) (vi) S.L. Kapoor vs. Jagmohan AIR 1981 S C 136, 145 The requirements of natural justice are met only if opportunity to represent is given in view of proposed action. The demand of natural justice are not met even if the very proceeded against as furnished the information on which the action is based, if it is furnished in a causal way. The pe…

DCIT, Central Circle-3, Surat vs. Shri Mahendra Champaklal Mehta, Surat

In the result, IT(SS)A No

ITA 31/SRT/2021[2016-17]Status: DisposedITAT Surat06 Sept 2023AY 2016-17

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A No. 06/Srt /2021 (Assessment Year: 2015-16)

Section 132Section 139Section 143(2)Section 153CSection 254(1)

…istered Society) Vs UOI (2017) 394 ITR 220 (SC)  CIT Vs P.V. Kalyanasundaram (2007) 294 ITR 49 (SC)  Umacharan Shaw & Bros Vs CIT (1973) 37 ITR 271 (SC)  Lalchand Bhagat Ambica Ram Vs CIT (1959) 37 ITR 288 (SC)  Dhakeshwari Cotton Mills Ltd. Vs CIT (1954) 26 ITR 775 (SC)  CIT Vs Maulikumar K. Shah 307 ITR 137 (Guj)  Govindbhai N. Patel Vs DCIT 41 taxmann.com 147 (Guj)  CIT Vs Lavanya Land (P) Ltd. (2017) 83 taxmann.com 161 (Bom)  ACIT Vs Miss Lata Mangeshkar (1974) 97 ITR 696 (Bom)  CIT Vs Anil Khandelwal (2015) 93 CCH 0042 (Del)  CIT Vs S.M. Aggarwal 162 Taxman 3 (Del)  CIT Vs Praveen Juneja ITA No. 5…

Asst. Commissioner of Income Tax, Central Circle-1, Surat vs. Kush Corporation, Surat

In the result, grounds of cross objection raised by assessee is partly allowed

ITA 357/SRT/2022[2016-17]Status: DisposedITAT Surat05 Sept 2023AY 2016-17

Bench: Shri Pawan Singh & Dr. Arjun Lal Sainiit(Ss)A No. 93 & 94/Srt /2022 (Assessment Year: 2014-15 & 2015-16)

Section 133ASection 254(1)

…ssessee relied upon the following case laws:  CIT Vs P.V. Kalyanasundaram (2007) 294 ITR 49 (SC),  Umacharan Shaw & Bros Vs CIT (1973) 37 ITR 271 (SC),  Lalchand Bhagat Ambica Ram Vs CIT (1959) 37 ITR 288 (SC),  Dhakeshwari Cotton Mills Ltd. Vs CIT (1954) 26 ITR 775 (SC),  CIT Vs Maulikumar K. Shah 307 ITR 137 (Guj),  CIT Vs Lavanya Land (P) Ltd. (2017) 83 taxmann.com 161 (Bom),  Anvar P.V. Vs P.K. Baseer and others (2014) 10 SCC 473,  Ravinder Singh Kaku Vs State of Punjab (2022) Live Law (SC) 461. IT(SS)A No. 93 & 94 & ITA 357/Srt/2022 & CO 01/Srt/2023 ACIT Vs Kush Corporation 11. We have considered the…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 66/BANG/2023[2017-18]Status: DisposedITAT Bangalore01 Sept 2023AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…many surmise and conjectures and if the conclusion is the result of suspicion, which cannot take place of proof in this matter.” 8.26. Further, reliance was placed on the judgement of Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT (26 ITR 775)(SC), wherein held that “assessment made u/s 23(3) of the Act could not be merely a few guess work without making reference to any evidence or material on record. There must be something more than bear suspicion to support the assessment. The estimate of gross rate of profit on sales by the ITO and the Tribunal same to be based on surmise and conj…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 65/BANG/2023[2015-16]Status: DisposedITAT Bangalore01 Sept 2023AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…many surmise and conjectures and if the conclusion is the result of suspicion, which cannot take place of proof in this matter.” 8.26. Further, reliance was placed on the judgement of Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT (26 ITR 775)(SC), wherein held that “assessment made u/s 23(3) of the Act could not be merely a few guess work without making reference to any evidence or material on record. There must be something more than bear suspicion to support the assessment. The estimate of gross rate of profit on sales by the ITO and the Tribunal same to be based on surmise and conj…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 64/BANG/2023[2014-15]Status: DisposedITAT Bangalore01 Sept 2023AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…many surmise and conjectures and if the conclusion is the result of suspicion, which cannot take place of proof in this matter.” 8.26. Further, reliance was placed on the judgement of Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT (26 ITR 775)(SC), wherein held that “assessment made u/s 23(3) of the Act could not be merely a few guess work without making reference to any evidence or material on record. There must be something more than bear suspicion to support the assessment. The estimate of gross rate of profit on sales by the ITO and the Tribunal same to be based on surmise and conj…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 63/BANG/2023[2013-14]Status: DisposedITAT Bangalore01 Sept 2023AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…many surmise and conjectures and if the conclusion is the result of suspicion, which cannot take place of proof in this matter.” 8.26. Further, reliance was placed on the judgement of Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT (26 ITR 775)(SC), wherein held that “assessment made u/s 23(3) of the Act could not be merely a few guess work without making reference to any evidence or material on record. There must be something more than bear suspicion to support the assessment. The estimate of gross rate of profit on sales by the ITO and the Tribunal same to be based on surmise and conj…

M/S. Yashaswi Fish Meal and Oil Company, Udupi vs. Deputy Commissioner of Income-Tax, Central Circle-1, Mangalore

In the result, all the appeals of the assessee are partly allowed

ITA 62/BANG/2023[2012-13]Status: DisposedITAT Bangalore01 Sept 2023AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shi V. Srinivasan, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 131Section 132(4)Section 133ASection 143Section 143(1)Section 143(3)Section 147Section 148

…many surmise and conjectures and if the conclusion is the result of suspicion, which cannot take place of proof in this matter.” 8.26. Further, reliance was placed on the judgement of Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT (26 ITR 775)(SC), wherein held that “assessment made u/s 23(3) of the Act could not be merely a few guess work without making reference to any evidence or material on record. There must be something more than bear suspicion to support the assessment. The estimate of gross rate of profit on sales by the ITO and the Tribunal same to be based on surmise and conj…

Procter & Gamgle Hygiene& Healthcare, Ltd, Mumbai vs. ACIT Cir 7(1), Mumbai

Appeals are partly allowed

ITA 6591/MUM/2010[2004-05]Status: DisposedITAT Mumbai25 Aug 2023AY 2004-05
For Appellant: Shri Yogesh TharFor Respondent: Shri Gaurav Batham
Section 143(1)Section 143(3)

…erifiable from the details attached herewith. Further, it is a settled law that no additions can be made on conjectures or surmises and on ad-hoc basis. The Assessee submits that Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. vs. CIT (1954) 26 ITR 775 (SC) has held that the ITO cannot make the assessment on a pure guess without reference to any evidence or material. 20.4 I have perused the facts of the case, submissions of the Appellant and the details submitted before me vide submissions dated December 22, 2010, providing item wise Invoice no, date and narration for expenses incurred under var…

Addl CIT RG 7(1), Mumbai vs. Proctor & Gamble Hygiene & Healthcare Ltd, Mumbai

Appeals are partly allowed

ITA 6549/MUM/2010[2004-05]Status: DisposedITAT Mumbai25 Aug 2023AY 2004-05
For Appellant: Shri Yogesh TharFor Respondent: Shri Gaurav Batham
Section 143(1)Section 143(3)

…erifiable from the details attached herewith. Further, it is a settled law that no additions can be made on conjectures or surmises and on ad-hoc basis. The Assessee submits that Hon'ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. vs. CIT (1954) 26 ITR 775 (SC) has held that the ITO cannot make the assessment on a pure guess without reference to any evidence or material. 20.4 I have perused the facts of the case, submissions of the Appellant and the details submitted before me vide submissions dated December 22, 2010, providing item wise Invoice no, date and narration for expenses incurred under var…

Manasi Jewellers Private Limited, Mumbai vs. The Deputy Commissioner of Income Tax, Central Circle 3(4), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 819/MUM/2023[2020-2021]Status: DisposedITAT Mumbai23 Aug 2023AY 2020-2021

Bench: Shri Pavan Kumar Gadale, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blemanasi Jewellers Pvt. Ltd V. Dcit, Central Circle 3(4) Office No. 37, 97/101 Room No. 1915 Mumbadevi Diamond Premises Air India Building, Nariman Point Mumbai- 400021 Sheikh Memon Street Zaveri Bazar, Mumbai- 400002 Pan: Aabcm5354P (Appellant) (Respondent)

Section 132Section 143(2)Section 153CSection 69Section 69A

…para 1.1.5. Accordingly, this amount can in no circumstances be added under section 69A as the same are business receipts (which in fact, was already offered to tax by the Appellant) 1. Hon'ble Supreme Court in the case of Dhakeshwari Cotton Mills vs CIT 1954 26 ITR 775 (SC) has held thatin making the assessment the Income tax Officer is not entitled to make a pure guess and make an assessment without reference to any evidence or any material at all. There must be something more than bare suspicion to support the assessment. Page No. | 10 Manasi Jewellers Pvt. Ltd 1. The Hon'ble Supreme Court in the case of Lakh…

Institute Management Committee of Iti, Narayanpur vs. Income Tax Officer, Ememption-I, Raipur

In the result, appeal filed by the assessee is partly allowed for statistical purposes in terms of our observations hereinabove

ITA 27/RPR/2019[2015-16]Status: DisposedITAT Raipur21 Aug 2023AY 2015-16

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं./Ita No.27/Rpr/2019 निर्धारण वर्ष /Assessment Year: 2015-16 V. Institute Management Committee, The Income Tax Officer- Women Iti, Narayanpur, (Exemption-1), Chhattisgarh-494 661. Ayakar Awasiya Parisar, Civil Lines, Raipur, Chhattisgarh-492 001. [Pan: Aaati 8583 L ] (अपीलार्थीर्थी/Appellant) (प्रत्यर्थी/Respondent) : अपीलार्थी की ओर से/ Appellant By None प्रत्यर्थी की ओर से /Respondent By : Mr.Satya Prakash Sharma, Sr.Dr : सुनवाई ई की तारीखरीख/Date Of Hearing 14.08.2023 घोषणा की तारीखरीख /Date Of Pronouncement : 22.08.2023

For Respondent: Mr.Satya Prakash Sharma
Section 11Section 12ASection 143(3)

…ng officer has made a lump sum addition without proper basis and proper evidence. The addition was made merely on guess work. The Hon'ble Supreme Court has held that Making addition merely on guesswork is not correct "Dhakeswari Cotton Mills Ltd. v CIT (1954) 26 ITR 775(SC)". Hence the disallowance of Rs 19,08,939/- should be deleted. With the above submissions we request your kind honor to delete the additions made by the Assessing Officer and oblige. 7. Contradicting submissions of the assessee, the Sr. DR vehemently supported the order of the AO & the Ld.CIT(A) and has requested to dispose of the matter in acc…

ACIT, New Delhi vs. M/S. Shiv Naresh Sports Pvt. Ltd., New Delhi

In the result, revenue appeal is dismissed

ITA 5538/DEL/2016[2011-12]Status: DisposedITAT Delhi18 Aug 2023AY 2011-12

Bench: Shri B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri S. B. Gupta, C. AFor Respondent: Shri H. K. Choudhary, [CIT] - D. R
Section 127Section 132Section 139Section 142(1)Section 143(3)

…ust be something more than mere suspicion to support the assessment order passed u/s 143(3) of the Act, the rule of law on this subject has been fairly and rightly stated by Hon’ble Supreme Court in the case of Dhakeswari Cotton Mills Ltd. Vs. CIT reported in 26 ITR 775 (SC). In our opinion, there is no valid reason to reject the books of accounts of the assessee and we do not find any infirmity in the order of ld. CIT(A) in accepting the books of accounts of the assessee. As we already held in earlier ground Nos.3 & 4 that the rejection of books of accounts is not justified, consequently, there is no question of…

Abhay Chordia, Jaipur vs. DCIT Circle 1, Jaipur

Appeal of the assessee is partly allowed

ITA 291/JPR/2023[2014-15]Status: HeardITAT Jaipur03 Aug 2023AY 2014-15

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Deeraj Borad, CAFor Respondent: Sh. Anoop Singh (Addl. CIT)
Section 139(1)Section 143(3)Section 145(3)Section 69C

…tax Act 1961 as well as related laws never support the actions based on hypothetical grounds. In this regard the assessee craves leave to refer to and rely upon on the following judgments of the Hon’ble Supreme Court: 1. Dharkeshwari Cotton Mills Ltd. Vs. CIT 26 ITR 775 2. Omar Salay Mohammed Vs. CIT 37 ITR 151 3. Lal Chand Bhagat Ambica Ram Vs. CIT 37 ITR 288 (l) That detailed exhaustive stock register has been maintained for each and every items traded and the same was duly produced before the A.O. (m) That out of total sales of Rs. 16,77,23,126/- except a meager local sales of Rs. 56,63,661/- the balance sale…

The DCIT1(1), Indore vs. Shri Ravi Arora, Indore

ITA 212/IND/2020[2011-12]Status: DisposedITAT Indore31 Jul 2023AY 2011-12

Bench: Shri Vijay Pal Rao & Shri B.M. Biyaniassessment Year:2011-12 Dcit-5(1), Shri Ravi Arora, Indore 1007, Khatiwala Tank, बनाम/ 236, Indraprasth Tower, 6, M.G. Road, Vs. Indore. (Revenue / Appellant) (Assessee / Respondent) Pan: Agdpa8921H Assessee By Shri Yash Kukreja, Ca & Shri Hitesh Chimnani, Adv & Ld. Ars Revenue By Shri P.K.Mishra, Cit Dr Date Of Hearing 04.05.2023 Date Of Pronouncement 31.07.2023

Section 143(2)Section 143(3)Section 40A(3)Section 68

…ment of outstanding due has been added in an adhoc manner. The findings of AO are based on presumptions and adhoc in nature. Page 32 of 37 DCIT v. Ravi Arora Assessment year 2011-12 9.2 The Hon'ble Supreme Court in Dhakeshwari Cotton Mills Limited v. CIT, (26 ITR 775) has held that the ITO cannot make assessment on a pure guess without any evidence or material and hence, such adhoc disallowance is unjustified. 9.3 In view of the above, I hereby direct to delete the addition of payment made for reimbursement of expenses paid by WCS on behalf of Appellant. In the result this ground is allowed.” 31. Ld. DR made a…

G-Tekt India Pvt. Ltd., New Delhi vs. DCIT, Circle- 10(2), New Delhi

ITA 5922/DEL/2018[2014-15]Status: DisposedITAT Delhi19 Jul 2023AY 2014-15

Bench: Sh. N.K.Billaiya & Sh.Anubhav Sharma

Section 143(3)

…e dies were sold to HCIL on losses to have a competitive edge. Ld. Counsel relied following judgments is support of his contention that Revenue cannot challenge the commercial expediency and wisdom of assessee. - Dhakeshwari Cotton Mills Ltd. vs. CIT : (1954) 26 ITR 775 (SC) - Nitin Sales Corporation vs. ITO : [2008] 212 Taxation 49 (Delhi HC) - Friends Clering Agency (P) Ltd. vs. CIT : [2011] 237 CTR 464 (Del) - Omar Salay Mohamed Sait vs. CIT : [1959) 37 ITR 151 - State of Orissa v. Maharaja Shri B.P. Singh Deo : (1970) 76 ITR 690 6.1 It was also submitted that appellant has sold dies to HCIL at loss of Rs. 39,…

Pinky Agarwal, Kolkata vs. ACIT, CC-3(1), Kolkata

In the result, all the appeals of the assessee(s) are allowed as per the terms indicated hereinabove

ITA 984/KOL/2018[2014-15]Status: DisposedITAT Kolkata14 Jul 2023AY 2014-15

Bench: Sri Sanjay Garg & Dr. Manish Borad

Section 143(2)Section 250

…Nos.: 982, 983, 984 & 2068/KOL/2018 Assessment Year: 2014-2015 M/s. Gateway Financial Services Ltd. M/s. Nishit Agarwal Beneficiary Trust Pinky Agarwal Pratik Agarwal Beneficiary Trust 30. In the case of Dhakeswari Cotton Mills Ltd. v. CIT reported in (1954) 26 ITR 775 (SC) the Hon'ble Supreme Court has held that “the rule of law on this subject has been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh where it was stated that while proceeding under sub- section (3) of section 23, the Income-tax Officer, though not bound to rely on evidence produced by the assessee as he consi…

M/S. Nishit Agarwal Beneficiary Trust, Kolkata vs. ACIT, CC - 3(1), Kolkata

In the result, all the appeals of the assessee(s) are allowed as per the terms indicated hereinabove

ITA 983/KOL/2018[2014-15]Status: DisposedITAT Kolkata14 Jul 2023AY 2014-15

Bench: Sri Sanjay Garg & Dr. Manish Borad

Section 143(2)Section 250

…Nos.: 982, 983, 984 & 2068/KOL/2018 Assessment Year: 2014-2015 M/s. Gateway Financial Services Ltd. M/s. Nishit Agarwal Beneficiary Trust Pinky Agarwal Pratik Agarwal Beneficiary Trust 30. In the case of Dhakeswari Cotton Mills Ltd. v. CIT reported in (1954) 26 ITR 775 (SC) the Hon'ble Supreme Court has held that “the rule of law on this subject has been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh where it was stated that while proceeding under sub- section (3) of section 23, the Income-tax Officer, though not bound to rely on evidence produced by the assessee as he consi…

M/S. Gateway Financial Services Ltd., Kolkata vs. ACIT, CC - 3(1), Kolkata

In the result, all the appeals of the assessee(s) are allowed as per the terms indicated hereinabove

ITA 982/KOL/2018[2014-15]Status: DisposedITAT Kolkata14 Jul 2023AY 2014-15

Bench: Sri Sanjay Garg & Dr. Manish Borad

Section 143(2)Section 250

…Nos.: 982, 983, 984 & 2068/KOL/2018 Assessment Year: 2014-2015 M/s. Gateway Financial Services Ltd. M/s. Nishit Agarwal Beneficiary Trust Pinky Agarwal Pratik Agarwal Beneficiary Trust 30. In the case of Dhakeswari Cotton Mills Ltd. v. CIT reported in (1954) 26 ITR 775 (SC) the Hon'ble Supreme Court has held that “the rule of law on this subject has been fairly and rightly stated by the Lahore High Court in the case of Seth Gurmukh Singh where it was stated that while proceeding under sub- section (3) of section 23, the Income-tax Officer, though not bound to rely on evidence produced by the assessee as he consi…