2000 (8) TMI 258

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....Jodhpur, dt. 26th Sept., 1995. 2. Out of the total seven grounds taken by the assessee in this appeal, grounds 1 to 3 relate to allowance of depreciation, ground No. 5 relates to allowance of interest paid to partners and ground No. 6 relates to the allowance of interest to third parties out of income from contract receipts computed by applying net profit rate. 3. We have heard both the part....

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....round No. 4 relates to computation of net profit on the amount of sales-tax and royalty included in the contract receipts. 5. In this case, assessment under s. 143(3) was finalised by the AO by invoking the provisions under s. 145 and computing the income from the contract business by applying net profit rate on contract receipts which were inclusive of sales-tax on bricks and royalty on clay. ....

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....d in contract receipts for the purpose of computing the income by applying net profit rate. 7. As against this, the learned Departmental Representative of Revenue submitted that the amount of royalty and sales-tax form part of trading receipts and contended that the same therefore, cannot be excluded from the contract receipts while computing income by applying net profit rate. 8. After cons....