TMI Blog2014 (3) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... x Appellate Tribunal, Armitsar Bench, Amritsar in ITA No.336 (ASR)/2012, for the assessment year 2009-10, claiming following substantial questions of law:- 1. Whether the Hon'ble ITAT was correct in law in confirming the order of the learned CIT(A) scaling down the net profit to 8% on the gross receipts as against 12% applied by the AO at the time of assessment? 2. Whether the Hon'ble ITAT was correct in law in confirming the order of the learned CIT(A) allowing the depreciation out of the net profit? 2. A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee is a contractor firm. It is engaged in the business of execution of government contracts. Return de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue and cross objections of the assessee and confirmed the order of the CIT(A). Hence the instant appeal by the revenue. 3. On 9.10.2013, the motion bench while issuing notice of motion had recorded as under:- 'The revenue challenges order dated 21.2.2013 passed by the Income Tax Appellate Tribunal, Amritsar and order dated 7.6.2012, passed by the CIT(A) by raising the following substantial questions of law:- 1. Whether the Hon'ble ITAT was correct in law in confirming the order of the learned CIT(A) scaling down the net profit to 8% on the gross receipts as against 12% applied by the AO at the time of assessment? 2. Whether the Hon'ble ITAT was correct in law in confirming the order of the learned CIT(A) allowin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. After hearing learned counsel for the parties, we do not find any merit in the appeal. 7. The issue before this Court in CIT v. Chopra Bros. India (P.) Ltd. [2001] 252 ITR 412/119 Taxman 866 and Girdhari Lal v. CIT [2002] 256 ITR 318/[2001] 119 Taxman 863 was with regard to deduction to be made on account of depreciation from the gross receipts while applying net profit rate. It was held on the basis of a circular issued by the Board, which was binding on the revenue that the gross receipts to which net profit rate is to be applied shall be determined after giving allowance on account of depreciation. 8. The judgment relied upon by the learned counsel for the revenue in Gian Chand Labour Contractors's case (supra) was relating ..... X X X X Extracts X X X X X X X X Extracts X X X X
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