1981 (10) TMI 83 - AT - Income Tax

Summary

The assessee appealed against the CIT(A)'s application of a 2% net rate on liquor sales. The ITO initially applied a 3% rate, reducing the loss shown by the assessee. The CIT(A) further reduced the rate to 2%. The tribunal ruled in favor of the assessee, noting the high license fee paid, lack of discrepancy in accounts, and absence of comparable cases to justify the profit rate adjustment. The appeal was allowed.