TaxTMI 
TaxTMI 
2011 (12) TMI 724
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....3. The facts, in brief, are that the assessee is engaged in retail sale of Indian Made Foreign Liquor (IMFL), Beer and Country Liquor in Vidisha, Bhopal and Bilaspur Districts. During the year, the assessee had shown total sales of ₹ 13.76 crores, which gave a net profit rate of 1.2 %. By observing that sale of the assessee was not verifiable, the AO rejected the books of accounts by applying the provisions of se 145(3) and applied net profit rate of 3 % by estimating sales at ₹ 16.82 crores. 4. By the impugned order, the ld. CIT(A) held that the AO was not justified in rejecting the books of account, which were regularly maintained and not disturbing the declared results by enhancing the net profit rate, following was the pre....
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....sulted in stiff competition in this line of business which has adversely affected profit margins. For this reason also, reliance by the Assessing Officer on the decision of the Jurisdictional High Court in the case of Gendamal Hazarimal may not be very relevant, owing to the changed circumstances. In fact this decision does not advance the cause of the AO as it is actually in favour of the assessee. No defect in the books of account have been pointed out by the Assessing Officer which would justify invoking the provisions of Section 145(3). The facts of the appellant's case are squarely covered by the decision of the I.T.A.T. Agra Bench in the case of Laxminarayan Ramaswaroop Shivhare reported in 123 TTJ 241, where it has been held that rej....