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TMI Blog2013 (7) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondent : Shri Phani Kishore (DR) ORDER PER BENCH : These are cross appeals filed by the Revenue and assessee against the Order of the CIT(A) for the assessment years 2006-2007 and 2007-2008. Since, common issues are involved in these appeals, they were clubbed together and heard together and are being disposed of by this consolidated order for the sake of convenience. ITA.No.53/Hyd/2013 : A.Y. 2006-2007 : 2. The brief facts of the case are that the assessee is a sub-contractor of M/s. Madhucon Projects Limited, Hyderabad and during the year, the assessee-firm had carried out sub-contract work relating to formation of B.T.Road and tunnel work in Madhya Pradesh. The assessee also took subcontract work of canal formation and constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carried out amounting to ₹ 26,65,10,743/- during the relevant period. The Assessing Officer admitted the gross profit rate at 12.5% as in the earlier year and aggrieved by the said Order of the Assessing Officer, the assessee has carried the matter in appeal before the CIT(A) who gave similar direction as in assessment year 2006-2007. Still aggrieved, the assessee is in appeal before us. 4. Since, the issue is similar for both the assessment years, the learned Counsel for the assessee Shri P.Murali Mohan Rao took us through page 18 of the Order of the Tribunal in ITA.No.666/Hyd/2010 etc., batch dated 28th December, 2012 in the case of M/s. Madhucon Granites Limited ( Main Contractor ) wherein it has been held as follows : In our opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en full effect and no further deduction under these provisions shall be allowed. Depreciation is allowable uj s. 32 of the Act. Therefore, as provided in section 44AD no other j separate deduction shall be allowed. However, in our opinion, estimation of income at 12.5% on the gross receipts is at higher side. The AR relied on the order of the Tribunal in the case of Krishna Mohan Constructions in ITA Nos. 116 117jHydj2007 for the A.Ys. 1993-94 and 1994-95 wherein the Tribunal estimated the income of the assessee at 12.5% and thereafter given deduction towards depreciation. 5. Respectfully following the decision in the case of M/s. Madhucon Granites Limited (supra), we are of the opinion that the assessee being a sub-contractor, its income s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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