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2014 (12) TMI 565 - HC - Income TaxApplicability of section 44AD - Grant of depreciation - Whether the Tribunal has erred in granting depreciation to the assessee, as his income was calculated at a net profit rate – Held that:- It is clarified that Section 44AD(2) applies to assessees whose gross receipts do not exceed ₹ 40 lacs - assessee's gross receipts exceeded ₹ 10 crores – the circular issued by CBDT clarifies the same – thus, it applies to an assessee whose gross receipts do not exceed ₹ 40 lacs, the Tribunal has rightly allowed depreciation to the assessee - net profit rate of 10% was rightly reduced to 6% and as there was no reason to apply such a high gross profit percentage - The findings of fact being devoid of an arbitrary exercise of discretion or any perversity in the reasoning does not give rise to a substantial question of law – Decided against revenue.
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