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2014 (1) TMI 1762 - AT - Income TaxAllowable deduction from the estimated income - CIT(A) allowing depreciation, interest to bank and remuneration to partner out of net income estimated by applying net profit rate of 8% by the AO - Held that:- There is no difference in the quantification of the relief to the assessee. However, the objection of the assessee is that consecutively in assessment years as discussed above, year after the year, a net profit rate of 8% further subject to depreciation, interest and remuneration paid to partners have been held to be justified in assessee's own case and by adopting net profit rate only and not mentioning further deduction on account of depreciation, interest and remuneration paid to partners. It is likely to set a wrong precedent in assessee's own case which may lead to complexities sometimes in future. Since there is no difference between the findings of the ld. CIT(A) in this year vis-a-vis earlier assessment years. However, the objection of the assessee seems to be justified. Therefore, we amend the later part of the findings of the ld. CIT(A) where he adopted the net profit rate of 5.12% on total contract receipts allowing depreciation, interest and remuneration paid to partners. In our considered opinion, the law demands consistency to avoid any future misunderstanding and to keep the findings in the same manner we hold that net profit rate of 8% further subject to depreciation, interest and remuneration paid to partner could be final finding. Accordingly, we hold as above and allow the appeal of the assessee to that extent.
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