TaxTMI 
TaxTMI 
2001 (1) TMI 228
X X X X Extracts X X X X
X X X X Extracts X X X X
....e heard the arguments of both the sides and also perused the records. 3. Ground No. 1 disputes the learned CIT(A)'s direction to AO to allow depreciation and interest to third parties out of income computed by applying N.P. rate of 10%. The learned Departmental Representative of Revenue has contended that in fact they have challenged the reduction in N.P. rate by CIT(A) from 11 per cent to 10 per....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... objection to the learned Departmental Representative's arguments on reasonableness of rate of profit for the reason that the same was not contained in the ground raised by the Department before the Tribunal. He has also contended that so far as the merits of the learned Departmental Representative's contentions are concerned, even less N.P. rate was considered reasonable by the learned CIT(A) and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ableness of the N.P. rate. Since the depreciation and interest to third parties have been held by the Hon'ble jurisdictional High Court to be further separately allowable after determining the net profit, in the case of M/s Jain Construction Co., we find no fault with the impugned order of learned CIT(A) on this count. We, therefore, decline to interfere with the same. 5. Ground No. 2 disputes th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 6. We have considered the rival contentions and the relevant material on record. From the perusal of record, we find that the learned CIT(A) has followed the decision of Tribunal in the case of M/s Tola Ram Phusha Ram for asst. yr. 1988-89 in directing to charge the interest on FDR on actual receipt basis. We also find that in assessee's letter to CIT(A), dt. 19th April, 1995, placed on pp. 3 to ....