9911796707
TMI Blog1981 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... quor contractor and during the asst. yr. 1977-78, it disclosed a loss of Rs. 1,99,147 in the country liquor business. The ITO found that the assessee disclosed its sales at Rs. 48,06,720 on which a net loss of Rs. 1,74,062 was worked out. The sales were found to be unverifiable and some expenses were also not found vouched and verifiable. He, therefore, applied a rate of 3 per cent on the gross sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also wrongly upheld a rate of 2 per cent. It was further pleaded that a quantitative stock tally was furnished, purchase of liquor was made from Government warehouse and the bulk of the expenditure which represented the licence fee of Rs. 36,00,000 was fully vouched and verifiable and in these circumstances, the book results as disclosed by the assessee should have been accepted. 5. The ld. Rep. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n certainly affected the margin of profit. Apart from mentioning that the sales and expenses are not fully vouched and verifiable, the ITO has not pointed out to any discrepancy or any wrong entry in the books of accounts, no comparative case has also been pointed out to indicate that under similar circumstances, other liquor contractors during the same year earned a better margin of profit. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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