https://www.taxtmi.com/caselaws?id=12342 Where income was determined by applying an estimated net profit rate based on past history after rejection of accounts, the issue was whether interest on borrowings paid to third parties could still be separately allowed. The HC held that the net profit rate adopted by the tax authority was computed by excluding depreciation and interest elements; therefore, the trading results derived from such rate necessarily required further appropriation for statutorily allowable depreciation and interest to arrive at taxable income. Upholding the tribunal's modification making the net profit rate subject to adjustment for depreciation and interest, the HC treated the conclusion as a factual finding not giving rise to any substantial question of law and declined interference. en-us Thu, 18 Apr 2002 00:00:00 +0530 Wed, 07 Jan 2026 13:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12342 Where income was determined by applying an estimated net profit rate based on past history after rejection of accounts, the issue was whether interest on borrowings paid to third parties could still be separately allowed. The HC held that the net profit rate adopted by the tax authority was computed by excluding depreciation and interest elements; therefore, the trading results derived from such rate necessarily required further appropriation for statutorily allowable depreciation and interest to arrive at taxable income. Upholding the tribunal's modification making the net profit rate subject to adjustment for depreciation and interest, the HC treated the conclusion as a factual finding not giving rise to any substantial question of law and declined interference. Case-Laws Income Tax Thu, 18 Apr 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12342