TMI Blog2014 (8) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing deduction towards payment of sales tax cannot be said to be unjustified or taking away the reasonableness of estimate of income of the assessee – Decided against Revenue. - D. B. Income Tax Appeal No. 136/2006 - - - Dated:- 3-7-2014 - Dinesh Maheshwari And Banwari Lal Sharma,JJ. For the Appellant : Mr. Sunil Bhandari ORDER By The Court This appeal by the Revenue against the order passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ( ITAT ) in ITA No. 04/JU/2005 for the Assessment Year 1999-2000 has been admitted for consideration on the following substantial question of law:- Whether on the facts and in the circumstances of the case, the ITAT was justified in allowing the deduction on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct matter of this appeal. After applying the net profit rate of 12.5%, the AO proceeded to carry out computation as follows:- Net profit @ 12.5% on net contract receipt of ₹ 1,43,10,746/- (16905812-2595066) Rs.17,88,843/- Add: Disallowance of depreciation as discussed above Rs.17,885/- Add: Sub-let commission Rs.34,958/- Rs.18,41,686/- Less:- i) Depreciation 4,95,745 ii) Remuneration to partners 1,80,000 iii) Interest to partners 2,91,582 iv) Net in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessment Year 1993-94 with the application of net profit rate of 12.5% subject to depreciation, interest, remuneration to partners and payment to third parties has been upheld by this Court in D.B. Income Tax Appeal No. 12/1998 and, therefore, the order as passed by the ITAT affirming the order passed by the CIT(A) in the present case calls for interference. The order as passed in relation to the assessee for the Assessment Year 1993-94 has not been placed on record and it is difficult to find if the question of deduction towards sales tax payment was at all the subject matter of consideration in the said case. Then, even if the assumed net profit rate has been applied, the matter remains essentially of making the estimate, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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