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2013 (9) TMI 441 - AT - Income TaxDeduction of expenditure u/s 40(b) of salary and interest to partners - Net profit rate of 2% of the total turnover in computing the income from contract business applied after rejection of books of accounts Held that:- Relying upon the decision in the case of M/s. A.R. enterprises by Hon'ble ITAT, Agra , wherein it was held that applying a flat rate of 2% for both the contract would meet the interest of justice - No further deduction in the form of salaries & interest to partner of depreciation would be available to the assessee as the books of accounts have been rejected and the estimate of net profit rate of 2% shall be deemed to take into consideration all allowable deductions available to the assessee in the form of depreciation interest and remuneration to the partners and all other expenditures claimed in the P & L account Also, it is not in dispute that the books of account were not maintained by the assessee in proper manner and the same were also not supported with proper bills and vouchers It is also noted that rejection of books of account have not been challenged Appeal of the Assessee is dismissed Decided against the Assessee.
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