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2015 (2) TMI 1276 - ITAT HYDERABADProfit at 5% from wine business - Held that:- When the authority concerned has exercised discretion while estimating profit at a particular rate, it cannot be interfered with such exercise of discretion, unless such exercise of discretion is absolutely arbitrary. The net profit percentage declared by assessee from AY 2009-10 to 2013-14 varies between 1.54% to 3.50%. Though, it is a fact that initially the Tribunal had adopted the net profit rate of 3% in case of retail trade in wine, but, subsequently, in many cases, the Tribunal has approved estimation of profit at 5%. Therefore, considering the totality of facts and circumstances of the case, we are of the view that estimation profit at 5% on the cost of goods in the present case is justified. - Decided against assessee.
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