TMI Blog2013 (4) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities when the same rate has been applied to both the nature of receipts. The assessee has submitted that the interest is part and parcel of the assessee's expenditure when the secured loans are against the assets held by the assessee amounting to more than Rs.5 Crores. Similarly the interest earned by the assessee has no bearing to the expenditure of interest along with the depreciation claimed when the CIT(A) has considered taxation of the contract receipts at 8% net of depreciation. That means the bulk of the secured loans against which assets are held requires claim of interest and depreciation in accordance with the law and not because the assessing authorities have tried to tax 8% of the gross receipts when the direct expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. - I.T.A.No. 631/CTK/2012 - - - Dated:- 14-2-2013 - Shri K. K.Gupta And Shri K. S. S. Prasad Rao,JJ. For the Appellant : Shri D. K. Sheth, M. Sheth, ARs For the Respondent : Smt. Paramita Tripathy, CIT-DR ORDER Shri K. K. Gupta, Accountant Member. This appeal by the assessee is on the solitary ground that the estimation of 8% by the Assessing Officer and as confirmed by the learned CIT(A) is on misinterpretation of facts as were submitted to the Assessing Officer as well as the learned CIT(A) requires rectification in view of the assessee's case being covered by the decision of the Tribunal in assessee's own case for the Assessment Year 2003-04 when on the direction of the Tribunal the assessing authorities for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's own case for the Assessment Year 2003-04 who had categorically noted that it will have no value of precedence for future orders. He submitted that the Assessing Officer took note of the same for the Assessment Year 2004-05 against which no appeal was preferred by the assessee appellant. Therefore, the learned CIT(A) ought to have considered that the taxation of income requires fine-tuning to the extent that when the Assessing Officer has separately taxed the interest income, he has indirectly allowed the expenditure of Rs.49,55,499 ought to have been considered for reduction insofar as it was not the case of the assessee rendering a gross margin on the assets laid out by the assessee for hiring. The learned CIT(A) therefore appreciated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned CIT(A) should be restricted after allowing interest and depreciation by granting part relief insofar as it should be reduced from the estimated 8% as claimed by the assessee in its financial statements. 5. The learned CIT-DR submitted that in order to claim lower estimation the assessee was required to maintain separate books of account for the two different receipts insofar as the bulk of the receipts are on account of civil construction and the hiring out of plant machineries receipts are not even 10% of the total gross receipts cannot be subject to reduction in accordance with the provisions of Section 44AE as submitted by the learned Counsel for the assessee. She fully supported the order of the learned CIT(A) n estimatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure when the secured loans are against the assets held by the assessee amounting to more than Rs.5 Crores. Similarly the interest earned by the assessee has no bearing to the expenditure of interest along with the depreciation claimed when the learned CIT(A) has considered taxation of the contract receipts at 8% net of depreciation. That means the bulk of the secured loans against which assets are held requires claim of interest and depreciation in accordance with the law and not because the assessing authorities have tried to tax 8% of the gross receipts when the direct expenditure being interest and depreciation on account of hire receipts would lead to loss in the business of hiring out would be paid for by the assessee from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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