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2015 (8) TMI 81 - AT - Income TaxRejection of books result - estimation of NP @5% of gross contractual receipts - in A.Ys. '07-08, '08-09 and '09-10 that the A.O. estimated the N.P at 5% by rejecting the book result without allowing depreciation, interest and salary paid to partners - Held that:- In the instant case, we find that the assessee has submitted the audited financial statements in which assessee has basically claimed depreciation and also details of fixed assets mentioning in the balance sheet. The details of depreciation, interest and remuneration paid to partners all are accounted in the books of account and same also claimed in the I.T Returns. We also find that the assessee claimed interest and remuneration to partners as per partnership deed. Therefore, relying upon on the documents, said CBDT Circular no.029D(XIX)-14) dated 31st August, 1965 and the decision and finding in the case of CIT Vs. M/s. Jain Construction Co.& Ors reported in (1999 (9) TMI 26 - RAJASTHAN High Court) we hold that the assessee firm is entitled for separate deduction of depreciation, interest and salary payment to partners. The A.O. is directed to allow the same and then estimate the net profit/income of the assessee after deducting the separate depreciation, partners' salary and interest as shown by the assessee. - Decided in favour of assessee.
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