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TMI Blog2017 (12) TMI 1836X X X X Extracts X X X X X X X X Extracts X X X X ..... ution of civil contract works. During the year relevant to the assessment year, the assessee firm filed its return of income through e-filing for the assessment year 2011-12 on 30.09.2011 declaring total income at Rs. 1,03,36,300/-. The case was selected for scrutiny and the assessing officer (AO) completed the assessment on total income of Rs. 2,26,89,287/- as under. Income from Main Contracts as estimated Rs. 1,10,64,500 Income from Sub-Contracts as estimated Rs. 67,27,496 Income from Sub-Contracts awarded as Estimated Rs. 6,94,400 Rental receipt assessed under other sources Rs. 5,20,000 Interest received assessed under other sources Rs. 36,82,891 Total Income assessed Rs. 2,26,89,287 The AO did not allow the depreciation on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of this Tribunal in the assessee's own case for the assessment year 2009-10, in ITA NO.370/Vizag/2012 dated 30/11/2015 wherein the Coordinate Bench of this Tribunal on the similar facts confirmed the estimation of income and allowed the depreciation subject to the condition that the resultant income should not be less than the returned income. The Ld. A.R.submitted that the facts of the assessee's case for the assessment year 2011-12 are similar to that of the facts of the assessee for the assessment year 2009-10, hence there is no reason for deviation. 7. On the other hand, the Ld. D.R. relied on the orders of the CIT(A). 8. We have heard both the parties, perused the materials available on record and gone through the orders of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of this Tribunal, we are of the opinion that depreciation is a allowable deduction, even after estimation of net profit from the contract receipts. Therefore, we direct the assessing officer to allow the depreciation against the income estimated from the contract receipts. As far as the disallowance of remuneration to partners and interest on partner's capital account is concerned, the statute itself in section 44AD of the Act, allowed separate deductions towards interest on capital accounts and remuneration to partner's, after estimation of net profit from the gross receipts. The CIT (A) after considering the facts and circumstances of the case, has rightly directed the A.O. to allow remuneration to partners and interest on partner's ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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