https://www.taxtmi.com/caselaws?id=470384 Under the presumptive-taxation scheme, declared profit cannot be enhanced solely by applying average net-profit rates from earlier years when eligibility and the character of business receipts were undisputed. Although the assessing authority may examine the correctness of a presumptive-taxation claim, any enhancement requires adverse material that contradicts the taxpayer's explanation for reduced margins and increased turnover. A fresh inquiry into eligibility or allegedly ineligible receipts, where those issues did not arise from the assessment order, would improperly allow the Revenue to improve its case. Applying a net-profit rate based only on past profitability was therefore unjustified. en-us Thu, 05 Feb 2026 00:00:00 +0530 Fri, 24 Jul 2026 21:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470384 Under the presumptive-taxation scheme, declared profit cannot be enhanced solely by applying average net-profit rates from earlier years when eligibility and the character of business receipts were undisputed. Although the assessing authority may examine the correctness of a presumptive-taxation claim, any enhancement requires adverse material that contradicts the taxpayer's explanation for reduced margins and increased turnover. A fresh inquiry into eligibility or allegedly ineligible receipts, where those issues did not arise from the assessment order, would improperly allow the Revenue to improve its case. Applying a net-profit rate based only on past profitability was therefore unjustified. Case-Laws Income Tax Thu, 05 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470384