TMI Blog2013 (12) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... hat these amounts should be reduced out of the estimated income - Depreciation is allowable u/s 32 of the IT Act and it falls under the provision of section 30 to 38 - Deemed to have been already given full effect while estimating the income of the assessee - Decided in favour of assessee. - ITA No.1038/Hyd/2011 - - - Dated:- 31-1-2013 - Shri Chandra Poojar And Shri Saktijit Dey,JJ. For the Appellant : Shri R. V. Seshaiah Naidu For the Respondent : Smt. Amita S. Gupt ORDER Per Chandra Poojari, Accountant Member:- This appeal by the assessee is directed against the order of the Commissioner of Income-tax (Appeals) Guntur dated 24.3.2012, for the assessment year 2008-2009. 2. Effective grievance of the assessee in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner of Income-tax(Appeals) ought to have taken into consideration 5% of net profits is to be determined as per the guidelines of C.B.D.T., New Delhi, but not 12.5% as estimated. This is not justified." 3. We heard both sides and perused the orders of the Revenue authorities and other material on record. Assessee is a firm carrying on business of execution of civil contract works. The dispute involved in this case relates to determining the income of the assessee at Rs.17,52,000, by resorting to estimation applying a rate of 12.5% on gross receipts of Rs.1,40,16,010, as against a rate of 5% pleaded by the assessee for adoption, if at all the book results are to be rejected. On careful consideration of the matter, we find that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee afresh. Accordingly, this ground of the assessee appeal is partly allowed." 4. Following the above order, for the immediately succeeding year, viz. assessment year 2006-07 in ACIT V/s. Teja Constructions, Secunderabad, vide paras 10 and 12 of its order dated 17.2.2012, coordinate bench of this Tribunal in ITA No.1191/Hyd/2011 has held as follows- "10. The first two grounds are against the order of the CIT(A) (a) directing the assessing officer to estimate the income of the assessee @ 9% on own contract works, 8% on contracts taken by assessee on subcontracts and @ 5% on contracts given by the assessee to 3rd party on subcontracts and (b) directing the assessing officer to allow remuneration, interest on capital and depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances this year being identical as the earlier year and as Department has not brought anything on record to persuade us to take a different view, respectfully following the decision of the coordinate bench, we uphold the order of the CIT(A) regarding the rate of profits to be adopted on the gross receipts and a further allowance of remuneration, interest on capital and depreciation. The Revenue's appeal on these issues is dismissed. 12. Regarding depreciation, it is allowable u/s 32 of the IT Act and it falls under the provision of section 30 to 38 and be deemed to have been already given full effect while estimating the income of the assessee. Hence with respect to depreciation, the ground of appeal raised by the Revenue is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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