Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 869 - HC - Income TaxN.P. determination - Tribunal holding that the net profit rate @ 8% was applied on the contract receipts but no deduction was allowed on account of depreciation - whether 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 ITAT to re-do computation on the 12.5% of net profit - HELD THAT:- Tribunal 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] 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.
|