9911796707
TMI Blog2004 (7) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... l contractor and had shown profit of Rs. 2,11,561 on contract receipts of Rs. 1,31,21,000. After claiming deduction of depreciation of Rs. 48,264, the assessee had declared net profit slightly over 1 per cent. In response to show-cause notice issued by the AO, the assessee replied that Tribunal, Jaipur Bench, has itself decided in the case of the assessee that profit rate of 5 per cent should be applied, subject to depreciation, and interest to 3rd parties. However, the AO applied net profit rate of 8 per cent without allowing any further deduction of interest and depreciation and made the addition accordingly. Aggrieved, the assessee impugned the addition in appeal before the CIT(A). The CIT(A), by relying on the decisions of Tribunal, Jai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation and interest paid to 3rd parties. Thus, he contended that the order of CIT(A) does not merit any interference. 5. We have heard both the parties and carefully considered the rival submissions with reference to facts, evidence and material on record. From the facts discussed above, it is obvious that the order of CIT(A) is in conformity with the aforesaid orders of the Tribunal in assessee's own case for the abovementioned assessment years. Respectfully following the same, we are of the view that the order of CIT(A) in directing the AO to compute the income by applying profit rate of 5 per cent does not merit any interference. As regards the claim of the assessee for deduction of depreciation and interest to 3rd parties, the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted the addition. The Revenue is aggrieved by the order of CIT(A). Hence, this appeal before us. 7. The learned Departmental Representative relied on the order of the AO. 8. The learned counsel for the assessee, on the other hand, relied on the order of CIT(A) and also relied on the two judgments of the Hon'ble Andhra Pradesh High Court and Hon'ble Allahabad High Court cited by the CIT(A) in para 5 of his order and as mentioned above. 9. We have heard both the parties and carefully considered the rival submissions. From the facts discussed above, it is obvious that the income has been computed by rejecting the book results and by applying the net profit rate. Therefore, no addition under s. 40A(3) could be made because no deduction for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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