TaxTMI 
TaxTMI 
sir
i want the latest judgment on liquor sales net profit estimated at 3% by various tribunala, high courts and supreme court. please do the needful immediately.
liquor sales net profit estimated at 3% case laws
24 May 2018 
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Net profit estimation for liquor retailers: tribunals apply a low standard margin when books are unverifiable, subject to reported income.
Tribunals direct that where liquor retailers' books or sales invoices are unverifiable, taxable income should be estimated by applying a reasonable net-profit margin to purchases or stock put to sale, guided by comparable precedents and adjusted for business character; such estimated income must not be lower than the returned income. Revenue reliance on government excise margins to fix turnover has been moderated by tribunals which consider past performance and business mix, and tribunals have also limited separate additions when income is determined by estimation and accepted identifiable cash gifts where plausible. (AI Summary)
Tribunals direct that where liquor retailers' books or sales invoices are unverifiable, taxable income should be estimated by applying a reasonable net-profit margin to purchases or stock put to sale, guided by comparable precedents and adjusted for business character; such estimated income must not be lower than the returned income. Revenue reliance on government excise margins to fix turnover has been moderated by tribunals which consider past performance and business mix, and tribunals have also limited separate additions when income is determined by estimation and accepted identifiable cash gifts where plausible. (AI Summary)