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2020 (1) TMI 224 - HC - Income TaxBest judgment assessment - net profit rate in making assessment of the income - adjustment of the profits arrived at by applying net profit rate by way of allowance of depreciation of the assets used in business is permissible - HELD THAT:- The present issue that has been raised by the appellant in the present appeal is that once the Appellate Tribunal had determined profit on the basis of net profit basis @ 8% of the contract value, it was no longer open for the Income Tax Appellate Tribunal to re-do computation on the 12.5% of net profit. On perusal of impugned order, it appears that, though, the Tribunal has taken note of the directions of this Court, however, it had failed to apply the judgment rendered by this Court in the case of M/s. Shri Ram Jhanwar Lal [2008 (7) TMI 505 - RAJASTHAN HIGH COURT] nor the judgment rendered in the case of Jain Construction [1999 (9) TMI 26 - RAJASTHAN HIGH COURT] The present appeal is allowed to the extent of modifying the order of the Tribunal for determining the profit rate @ 8% instead of 12.5% on gross contract receipt as earlier determined by the Tribunal subject to allowing depreciation, interest and remuneration to partners. Accordingly, the appeal is allowed and the matter stands remitted back to the Income Tax Authorities concerned for recomputing the amount of tax.
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