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TMI Blog2013 (4) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 Assessment Year 2004-05 had agreed to the proposition of taxing the Net Profit at 8% of gross receipts on estimation. 2. The learned Counsel for the assessee initiating his arguments submitted that the assessee company is a Private Limited Company who derives income from civil construction works filed its return of income of Rs.4.65 Crores. The Assessing Officer on the basis of his finding that the assessee cannot differentiate the contract receipts and hiring receipts proceeded to recompute the correct income of the assessee at 9% of the total receipts when he chose to consider the audi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that the 8% of Net of depreciation which indicates that the depreciation claimed by the assessee was in accordance with the provisions of the I.T.Act when the income from the assets have been rendered to tax and the claim is in accordance with the provisions of the I.T.Act on having put them to use. Furthermore the technicality of the service tax which has been brought into the statute from the impugned Assessment Year requires consideration insofar as the gross receipts include a sum of Rs.1.90 Crores which was paid to the government was not part and parcel of the income being the contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th 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 estimation of 8% of the gross receipts insofar as the service tax cannot be reduced from the gross receipts for the purpose of estimating at 8% because it is not the case of the assessee to have claimed the same as an expenditure was considered by the Assessing Officer and the learned CIT(A) who has categorically given a finding that the estimation of 8% has to be on the gross receipts net of depreciation. 6. We have heard the rival parties and perused the material available on record. On our careful consideration of the facts and circumstances of case as brought on record by the authorities below, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 contract receipts leading the net income of 6.45% only. The assessee has returned more than 8% as per the benchmark of Section 44AD provisions which the authorities have applied clinches the issue in favour of the assessee that the estimation has to be in accordance with the provisions of law as was also considered by the Tribunal in assessee's own case for the Assessment Year 2003-04 when the assessment having been made by the Assessing Officer in the impugned Assessment Year is u/s.144 required consideration of the computation of the correct income as rendered to tax by the assessee. The dep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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