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2013 (5) TMI 687 - HC - Income TaxITAT's power of rectification - working-out depreciation after computing profit at the rate of 8% - Held that:- As in the original order, the Tribunal estimated the profit at the rate of 8% before depreciation, salary and interest to the partners on the basis of decision CIT vs. Jain Construction co. and ors. (1999 (9) TMI 26 - RAJASTHAN High Court) where the precise question was, whether while applying the profit rate of 8% u/s 44AD can depreciation still be claimed thereafter where the High Court had answered the question in favour of assessee. When the Tribunal, therefore, applied such a decision and specifically provided for working-out depreciation after computing profit at the rate of 8%, there was no ambiguity or uncertainty. Simply because the assessee himself had declared profit at 8.13% on such parameters, would not permit the Tribunal to change such a directive in exercise of rectification powers. Power of rectification can be exercised for correcting an error apparent on the face of the record and not for reviewing an order. In the present case, decision of the Tribunal to allow depreciation on 8% profit was a conscious decision. Thus such a view could not have been changed in exercise of power of rectification. On this short ground, we are prepared to reverse the Tribunal’s order under challenge.
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