The Tribunal dismissed the appeal of the Assessee and held that, the AO had taken the average of net profit which varied from one to three per cent. In the assessee’s line of business which was retail sale of liquor and had applied a net profit rate of 2 per cent. The Assesee has not brought on record to rebut the findings of the AO in terms of net profit prevailing in the retail liquor business in terms of any other comparative third party data. The AO had rightly applied the reasonable average of net profit for the business of business assessee. (AY.2017-18)
Satwinder Kaur Balachor v ITO (2023)105 ITR 14 (SN)(Chd) (Trib)
S. 144: Best judgment assessment-Liquor Business-Average Net Profit in this line of business which varied from 1 to 3 per cent. And applying net profit rate of 2 per cent is correct. No comparative data brought to rebut finding of AO in retail liquor business. [S.145]