https://www.taxtmi.com/caselaws?id=470674 Estimated liquor-business profit following rejection of accounts must reflect commercial factors, including competition, manufacturer incentives affecting purchase cost, turnover and past profit history. Estimation at 3% of purchases was considered appropriate rather than 5%, based on the earlier effective profit rate and increased turnover. Once business profit is estimated after rejecting the accounts, allowable business expenditure, including licence fees, is treated as allowed and cannot support a separate addition. Declared business income must also be excluded from the estimated-profit computation, while non-business income remains separately taxable. Taxable business profit is therefore recomputed on the 3% basis without separate business-related additions. en-us Thu, 30 Sep 2010 00:00:00 +0530 Tue, 04 Aug 2026 15:07:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470674 Estimated liquor-business profit following rejection of accounts must reflect commercial factors, including competition, manufacturer incentives affecting purchase cost, turnover and past profit history. Estimation at 3% of purchases was considered appropriate rather than 5%, based on the earlier effective profit rate and increased turnover. Once business profit is estimated after rejecting the accounts, allowable business expenditure, including licence fees, is treated as allowed and cannot support a separate addition. Declared business income must also be excluded from the estimated-profit computation, while non-business income remains separately taxable. Taxable business profit is therefore recomputed on the 3% basis without separate business-related additions. Case-Laws Income Tax Thu, 30 Sep 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470674