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2011 (1) TMI 1238 - AT - Income TaxEstimation of profit - Held that:- On examination of the books of account with reference to the voucher produced, the Assessing Officer found that the voucher does not tally with the cashbook - When the voucher does not tally with cashbook, the book results will not reflect the correct profit of the assessee - The Assessing Officer has rightly rejected the books of account. When the books of account were rejected the only method available to the Assessing Officer is to estimate the profit - The profit ratio cannot be a constant factor for each and every year - Tribunal has been uniformly estimating the profit from main contract at 8% to 12.5% depending upon the factual situation and 5% to 7% on the sub contract depending upon the factual situation. Seiniorage charges - Held that:- Following Brij Bhushanlal [1978 (10) TMI 2 - SUPREME Court] - The material supplied by the Government/contractor will not have any element of profit - The same shall be reduced from the contract receipts. Depreciation - Held that:- By Finance (No.2) Act of 2009 with effect from 1.4.2011 - The restriction of the total contract receipts of ₹ 40 lakhs has been removed - The deduction available u/s 30 to 38 shall be deemed to have been already given full effect and no further deduction under those sections shall be allowed - Decided against assessee. Interest and salary to partners - Held that:- In view of the amendment made u/s 44AD which has been made effective from 1.4.2011 - The Legislature intended to allow the interest and salary separately from the estimated income - Salary and interest paid to the partner shall be deducted from the income computed under subsection (1) of section 44AD subject to limitation u/s. 40(b) of the Act - Decided in favour of assessee.
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