Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 500 - PUNJAB & HARYANA HIGH COURTAllowability of depreciation and interest – Flat rate of net profit applied – Held that:- Following the decision in Commissioner of Income Tax vs. Chopra Bros. India (P) Limited [2001 (9) TMI 90 - PUNJAB AND HARYANA High Court] - in a case where the assessee makes a specific claim for depreciation and gives the information as required u/s 32 of the Act, the assessing officer is bound to take the claim of the assessee into consideration – thus, the assessee is entitled to deduction on account of depreciation from receipts while applying net profit rate on the gross receipts - Decided in favour of assessee. Deduction on interest paid on borrowed capital – Held that:- Following the decision in Commissioner of Income Tax, Patiala vs. M/s Gian Chand Labour Contractors Khanauri District Sangrur [2007 (11) TMI 300 - PUNJAB AND HARYANA HIGH COURT] - application of net profit rate takes into consideration all factors and the deductions which are referred to u/s 29 of the Act are deemed to have been taken into consideration while making such estimate – Decided against assessee. Application of net profit @ 10% - Held that:- CIT(A) was of the view that there were certain defects in the wages registers maintained by the appellant, estimated the net profit at 9% of the receipts – Tribunal has estimated the net profit rate of 10% of the receipts and further noticed that the Tribunal in similar cases had been adopting the net profit rate of 10% - No illegality or perversity could be pointed out warranting interference – thus, the net profit rate of 10% adopted by the Tribunal is just and reasonable – Decided against assessee.
|