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2021 (10) TMI 237 - ANDHRA PRADESH HIGH COURTRectification of mistake u/s 154 - Estimation of income tax 12.5% of the gross receipts and to grant depreciation - HELD THAT:- The legal position enunciated in Ramachandra Reddy [2014 (9) TMI 205 - ANDHRA PRADESH HIGH COURT] is that an assessee is not automatically disentitled to depreciation where the profit is determined on percentage basis. Hence, the issue of deduction on the score of depreciation from gross income which is computed on the basis of estimation is a debatable one and cannot be a palpable error on the face of the record. We are of the opinion deduction of depreciation from gross receipts of income estimated at the rate of 12.5% on main contractual receipts is a debatable question of law and fact. Since the issue is not a palpable mistake on record but involves interpretation of the ratio laid down in KNR Constructions [2012 (10) TMI 1046 - ITAT HYDERABAD] in the light of the law declared in Y.Ramachandra Reddy (supra), we are of the opinion that the invocation of jurisdiction under Section 154 of the Act was not justified. Hence, no case to admit the appeal on the proposed questions of law.
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