2014 (9) TMI 500

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....al') in ITA No.732/CHD/93, for the assessment year 1990-91. On 22.4.2003, the appeal was admitted to consider following substantial questions of law:- i) Whether on the facts and in the circumstances of the case, the learned ITAT is justified not to allow the depreciation and interest from the flat rate of net profit applied by him, in view of Circular No.29 DCXLX7F No.47/239/65 ITC dated 31.3.1965? ii) Whether the depreciation and interest are allowable deductions from the net profits even if total income is calculated by applying net profit rate? iv) Whether on the facts and in the circumstances of the case, there are any reasonable basis for applying a net profit rate of 10% of gross receipts by the Tribunal? 2. A few fac....

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....ITA No.126 of 2001 (M/s Lali Construction Co. Patiala vs. The Assistant Commissioner of Income Tax cum Assessing Officer, Patiala) decided on 20.11.2007, recorded as under:- "The points raised in this appeal may be categorized into following three issues: a) Whether, while applying net profit rate to the gross receipts, the assessee is entitled for deduction on account of depreciation allowance from such receipts? b) Whether interest paid on the borrowed capital is to be deducted from gross receipts while applying net profit rate? c) Whether the net profit rate of 10% applied by the ITAT in the present case is just and reasonable? Taking up the first point, the matter is no longer res integra. The Division Benches of this Cou....