9911796707
TMI Blog2015 (5) TMI 1225X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals are preferred by the assessee against the order of CIT(A)-II, Bhubaneswar dated 26-11-2012 for the assessment years 2005-06 & 2006-07 on common grounds and for the sake of reference, we extract the grounds raised in appeal No.113/CTK/2013 as under :- "1. Because that the learned The Commissioner of Income Tax (Appeals-II) erred in law as well as in facts by upholding the action of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the remuneration paid to working partners from the income estimated @8% of turnover which should have been allowed as per the provisions of law. 3. During the course of hearing, ld. Counsel for the assessee has submitted that the assessment was framed u/s.144 of the Act and the books of accounts were rejected by the AO and estimated the net profit @8% of the gross turnover. Against which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat while estimating the income all factors relating to interest on capital and remuneration paid to the partners and depreciation has already been taken into account and no further allowance can be given. 6. We have heard rival contentions and carefully perused the orders of the authorities below and documents placed on record and found that provisions of Section 44AD can only be applied to thos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal turnover of the assessee but he has not allowed the salary and interest paid to the partners, though the AO was required to allow the same even as per the provisions of Section 44AD of the Act. In the light of the these facts, we find force in the contention of the ld. AR of the assessee, therefore, we direct the AO to allow deduction on salary paid to working partners and interest paid to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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