Retailing expense allowance upheld where trade practice, certificate evidence and comparable precedent supported the 20% fixation.

Retailing expenses were required to be fixed having regard to the nature of the goods, prevailing trade practice and other relevant factors under the departmental circular dated 8-8-75, which was binding on the Department. The assessee supported a 20% allowance with trade practice evidence, a Chartered Accountant's certificate and a comparable Supreme Court precedent allowing 28% in similar goods. On those materials, the higher allowance accepted by the appellate authority was treated as justified, and the fixation of retailing expenses at 20% was upheld, with the Revenue's challenge failing.

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Issues: Whether retailing expenses were correctly fixed at 20% of the retail price.

Analysis: The departmental circular dated 8-8-75 was binding on the Department and required regard to the nature of the goods, trade practice in the commodity, and other relevant factors. The assessee relied on trade practice, a Chartered Accountant's certificate supporting 20% retailing expenses, and the allowance of 28% in a comparable line of goods in the cited Supreme Court decision. On these materials, the higher retailing-expense allowance accepted by the appellate authority was found to be justified.

Conclusion: The fixation of retailing expenses at 20% was upheld and the Revenue's challenge failed.

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