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TMI Blog2014 (12) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 (for short, the Act). The following questions are raised: (a) Whether on the facts and circumstances of the case the Appellate Tribunal is justified in estimating the Net Profit at 11.5% as against 12.5% as determined by Assessing Officer and whether such a deduction is based on material on record? (b) Whether the Appellate Tribunal is justified in directing grant of deduction on account of partners capital and salary to partners and also interest and financial charges? The respondent is a civil contractor. In its returns for the assessment year 1994-95, it has shown receipt of Rs. 96,81,456 from the contracts and a sum of Rs. 2,63,680/- in the form of lorry hire charges. The assessing officer did not believe the figures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exercise is akin to the one under Section 44AD of the Act, under which separate deductions provided for under Sections 30 to 38 of the Act are impermissible and in fact, are deemed to have been effected. Sri Ch. Pushyam Kiran, learned counsel for the respondent, on the other hand, submits that Section 145 of the Act provides an option to an assessee in cash or mercantile system of accounting and gives an option to the assessing officer to take recourse to the best judgment assessment under Section 144 of the Act and beyond that, it does not prohibit the ordinary exercise to be undertaken vis--vis a return directly or indirectly. He submits that the Tribunal has taken the correct view of the matter and the order does not warrant interfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consistent. If in fact, the exercise undertaken under Sections 145 and 144 of the Act is so comprehensive, there was no occasion to allow any deduction at all. However, depreciation under Section 32 was allowed by him, in the order of assessment itself. Secondly, none of those two sections contain any provision to the effect that the deductions under Section 32 to 38 of the Act are deemed to have been made. It is important to take note of Section 44AD of the Act for comparison. Sub-section (2) therein reads as under: Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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