Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 1333 - ITAT JODHPUREstimation of income - Rejection of books of accounts - AO directing to apply net profit rate of 8.48% before allowing claim for depreciation, interest & remuneration to partners and interest paid to third parties as against net profit rate applied by the A.O. at 10.5% subject to depreciation and interest and remuneration paid to the partners when provisions of sec. 145 - HELD THAT:- Assessee is a partnership firm deriving its income from execution of contract work undertaken from Government department. The books of account were rejected u/s 145(3) and net profit rate was applied. The Tribunal has also confirmed the application of provisions of section 145(3) of the Act but the assessee had claimed interest paid to third parties while estimating profit under this section. This issue was stated to be covered by the decision of this very Bench rendered in the case of M/s Ganesh Garhia Construction Co. Vs. ACIT [2014 (5) TMI 1202 - ITAT JODHPUR] - The issue of payment of interest to third parties being clearly covered by the Tribunal order and their consistent view, we modify the order accordingly by making observation that after invoking provisions of section 145(3) of the Act in this case, interest paid to third parties is also allowable.
|