9911796707
TMI Blog2014 (9) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favour of assessee. Deduction on interest paid on borrowed capital – Held that:- Following the decision in Commissioner of Income Tax, Patiala vs. M/s Gian Chand Labour Contractors Khanauri District Sangrur [2007 (11) TMI 300 - PUNJAB AND HARYANA HIGH COURT] - application of net profit rate takes into consideration all factors and the deductions which are referred to u/s 29 of the Act are deemed to have been taken into consideration while making such estimate – Decided against assessee. Application of net profit @ 10% - Held that:- CIT(A) was of the view that there were certain defects in the wages registers maintained by the appellant, estimated the net profit at 9% of the receipts – Tribunal has estimated the net profit ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of 10% of gross receipts by the Tribunal? 2. A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The assessee is a partnership firm doing its business at Patiala in Punjab State. It is engaged in the business of civil construction work relating to telecom authorities. For the assessment year 1990-91, the appellant firm filed its return of income showing total income at ₹ 4,72,000/-. The case was taken up for scrutiny and assessment was framed vide order dated 18.10.1991, Annexure P.1. The Assistant Commissioner of Income Tax cum Assessing Officer assessed the assessee to a total income of ₹ 6,00,861/-. The Assessing officer rejected the books of account on certain g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int, the matter is no longer res integra. The Division Benches of this Court in Commissioner of Income Tax vs. Chopra Bros. India (P) Limited (2001) 252 ITR 412 and Girdhari Lal v Commissioner of Income Tax and another, (2002) 256 ITR 318 while considering the aforesaid issue, in view of the circular issued by the Board, had held in a case where the assessee makes a specific claim for depreciation and gives the information as required under section 32 of the Act, the assessing officer is bound to take the claim of the assessee into consideration. Following the aforesaid judgments, it is held that the assessee is entitled to deduction on account of depreciation from receipts while applying net profit rate on the gross receipts. Now advert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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