ESTHURI ASWANTHIAH vs COMMISSIONER OF INCOME-TAX, MYSORE

The Supreme Court held that the Income-tax Appellate Tribunal has a judicial duty to decide all questions of fact and law raised in an appeal, and cannot make arbitrary decisions. In this case, the Tribunal's conclusion regarding the assessee's undisclosed income was based on no evidence, as it failed to record reasons for its estimate. The Court emphasized that the assessee's plea was not fairly tried, leading to the conclusion that the Tribunal's order could not be sustained, thus allowing the appeal.