2008 (12) TMI 830

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....essment year is 2004-2005. (4) The dispute pertains to estimation of sales turnover of Bar attached Hotel. The assessing authority has rejected the books of accounts and estimated the taxable turnover on best judgment assessment basis. The sales turnover of Indian Made Foreign Liquor ("IMFL" for short) was estimated by adding gross profit at the rate of 40%, though the assessee had declared the gross profit at 17.92%. The assessing authority, in his order, has noticed, that, the gross profit reported on the sales turnover of IMFL is too low, considering the nature and volume of business. (5) The assessee, being aggrieved by the additions so made by the assessing authority, had called in question the said assessment order before the first ....

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....nd decision. They are as under: "(i) Was the Appellate Tribunal justified in law in sustaining the estimated sales turnover of Indian Made Foreign Liquor fixing the gross profit at 25%? (ii) Was the Appellate Tribunal justified in law in discarding the gross profit reported by the assessee and fixing a higher gross profit when no suppression or irregularities detected in the sales of Indian Made Foreign Liquor? (iii) Was the Appellate Tribunal justified in law in not following its own finding on gross profit of the assessee for the previous years and fixing a higher gross profit without entering a finding on any change in circumstances warranting increase in the gross profit?" (9) Admittedly, the assessee's books of accounts a....