COMMISSIONER OF INCOME-TAX, MYSORE vs SEGU BUCHIAH SETTY

The Supreme Court ruled that under Section 23(4) of the Income-tax Act, 1922, the Income-tax Officer is mandated to make a best judgment assessment if the assessee fails to comply with notices under Sections 22(2) and 22(4). The Court held that sufficient cause must be demonstrated for each default, and merely showing cause for one default is insufficient to reopen the assessment under Section 27. The High Court's decision favoring the assessee was overturned, affirming the necessity of compliance with all relevant notices.