Liquor Trader Gets Relief as ITAT Reduces GP Rate to 3.13% & Deletes Separate Expense Disallowance

Navjeet Singh Bhatia Vs ITO (ITAT Raipur) Liquor Trader Gets Relief: ITAT Cuts GP Rate from 4% to 3.13%, Deletes Separate Expense Disallowance The Raipur ITAT granted substantial relief to a liquor trader by reducing the gross profit (GP) rate from 4% to 3.13% and deleting a separate ₹1 lakh ad hoc expense disallowance, holding that the Revenue cannot adopt a higher GP rate without justification when a comparable case in the same line of business has been accepted at a lower rate. The Assessing Officer had rejected the books of account under Section 145(3) on the grounds that the assessee ha...