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2017 (6) TMI 440 - ITAT AGRAEstimation of income by application of the profit rate on gross total receipt after rejecting books of 4 accounts u/s 145(3) - Held that:- It is just fair and reasonable to estimate income of the assessee at the Net Profit rate of 4.0% of the gross total receipts for the year under appeal. While estimating net profit at 4.0% on the gross total receipt; the assessee shall not be eligible for deduction of expenses under the head depreciation, payment of salary and interest on capital to the partners. Thus, the assessee gets relief of 2.0%, in estimation of net profit rate on the gross total receipts as against the 6% net profit rate estimated by the ld. CIT (A). Accordingly, this ground of appeal of the assessee is partly allowed and that of the revenue is dismissed. Addition u/s 68 - Held that:- Hon'ble Telangana and Andhra Pradesh (High Court) [2015 (3) TMI 153 - ANDHRA PRADESH HIGH COURT] wherein it is held that if there is a deposit in the partners' account with the firm, same has to be considered in the hands of the partners. The Juridictional Madhya Pradesh High Court in the case of CIT vs. Metachem Industries (1999 (9) TMI 21 - MADHYA PRADESH High Court) held if the depositor a partner or any other individual owns the entry then the burden of the assessee firm is discharged. It is immaterial whether credits in the name of partners are reflected in the partner’s capital account or current capital account. - Decided against revenue
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