2014 (4) TMI 73

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....oss-objections by the assessee. A condonation petition, duly supported by the affidavit of the Partner of the assessee firm has been filed. It has been explained therein that on receipt of the appeal papers and notice of posting of the Department's appeal, on 5.9.2013, assessee has been advised by its Authorised Representative to file the cross-objections, and it is due to lack of knowledge as to the need to file such cross-objections, prior to receiving such advice from the Authorised Representative, the delay in the filing of the Cross Objection has occurred. On careful consideration of the matter, we are convinced with the reasonableness of the explanation offered by the assessee. We accordingly condone the delay and proceed to dispose o....

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....n against the order of the CIT(A) with regard to denial of deduction in respect of remuneration and interest payments to partners. 6. Revenue has raised the following grounds in its appeal- 1. On the facts and the circumstances of the case and in law, the CIT(A)-VI erred in allowing expenditure of Rs.2,03,09,402/- which was not originally allowed in finalizing the scrutiny assessment proceedings in the absence of any iota of evidence advanced by the assessee in spite of several opportunities given. 2. On the facts and circumstances of the case and in law, the CIT(A) VI erred in calculating the profit at 7% of net receipts as against 8% of gross receipts. 3. For these and other reasons it is submitted that the order of the CIT(A)....

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....T) 41) covers the issue. It has been held therein that in the case of a sub-contractor, a rate of 5% for estimating the income from a construction contract would be reasonable. Even with regard to the grievance of the assessee in its cross-objection, which relates to allowability of deduction towards interest and remuneration payments to the partners, having estimated the income of the assessee by rejecting the books of account, we find that this issue is also covered in favour of the assessee and against the Revenue by the decision of the coordinate bench of the Tribunal dated 31st January, 2011 in the case of C.Eswara Reddy & Co., Hyderabad V/s. Asstt. CIT(ITA No.668 & 670/Hyd/2009 of the assessee and ITA No.685 and 686/Hyd/2009 of the Re....