2004 (7) TMI 320

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.... case are that the assessee was a civil contractor and had shown profit of Rs. 2,11,561 on contract receipts of Rs. 1,31,21,000. After claiming deduction of depreciation of Rs. 48,264, the assessee had declared net profit slightly over 1 per cent. In response to show-cause notice issued by the AO, the assessee replied that Tribunal, Jaipur Bench, has itself decided in the case of the assessee that profit rate of 5 per cent should be applied, subject to depreciation, and interest to 3rd parties. However, the AO applied net profit rate of 8 per cent without allowing any further deduction of interest and depreciation and made the addition accordingly. Aggrieved, the assessee impugned the addition in appeal before the CIT(A). The CIT(A), by rel....

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....f gross receipts and further to allow depreciation and interest paid to 3rd parties. Thus, he contended that the order of CIT(A) does not merit any interference. 5. We have heard both the parties and carefully considered the rival submissions with reference to facts, evidence and material on record. From the facts discussed above, it is obvious that the order of CIT(A) is in conformity with the aforesaid orders of the Tribunal in assessee's own case for the abovementioned assessment years. Respectfully following the same, we are of the view that the order of CIT(A) in directing the AO to compute the income by applying profit rate of 5 per cent does not merit any interference. As regards the claim of the assessee for deduction of deprecia....